One of the facts relied on, is that our markets are flooded by foreign goods, to the detriment of the native workman; and the argument founded on this supposed fact is, that we ought to tax foreign manufactures, so that we may, by this means, either reduce these importations, and so increase our corresponding home productions, or, on the other hand, induce or compel foreign nations to reduce their high tariffs, and thus enable us to export more to them. Let us first see how the fact stands as regards the flooding of our markets. Our exports of manufactured goods amount to between 200 and 220 millions, and our imports to 45 millions. For every pounds' worth, therefore, that we import, we export nearly five pounds' worth, and this is what is called flooding our markets. The truth is, that the flooding is the other way, that Protectionist nations are straining every nerve to keep out our productions, and are utterly unable to do so. So much for the fact relied on. Let us see how their argument works respecting the 45 millions of manufactures which we import—one-ninth only of our whole importation—the other eight-ninths being food and raw materials, which we get from all nations put together. We are told that we ought to tax, and possibly keep out, most of these 45 millions. But the consequences of doing so might be very awkward for us.
Foreigners might do one of three things. 1. They might turn Free Traders in consequence of our action. 2. They might retaliate by further taxing our exports to them. 3. They might submit to our imposts, and do the best they could in the circumstances. As to their turning Free Traders, I cannot for a moment believe that at all likely to happen in consequence of our action. Their policy drifts more and more towards Protection, and is intended, apparently, not so much to extend exports as to restrict imports, and they most likely would retaliate on us by a war of tariffs, which would be most damaging to us, seeing that they have a field of taxation of our exports of 200 to 220 millions, while we could tax them on only 45 millions. Surely that is not a pleasant contingency to contemplate! Then comes the third alternative, of their
