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114 ECONOMIC INQUIRIES AND STUDIES
occurred to make the former tariffs more injurious in
recent years than they were down to 1875. For in-
stance, it may be said that owing to the fall of prices
in recent years the burden of specific duties has become
higher than it was. The duty is nominally unchanged,
but by the fall of prices its proportion to the value of
the article has become higher. This is no doubt the
case to a large extent. On the other hand, ad valorem
duties have been lowered in precisely the same ~vay.
The fall of prices has brought with it a reduction of duty,
and especially on articles of English manufacture, where
the raw material is obtained from abroad, the reduction
of duty, being applicable to the whole price, must cer-
tainly have had for effect to render more effective than
before the competition of the English manufacturer.
Whether on the whole the reduction of ad valorem
duties consequent on the fall of prices has been sufficient
throughout the range of our foreign trade to com-
pensate the virtual increase of the weight of specific
duties from the same cause seems to be a nice question.
This being the case, it must be very difficult indeed to
show that on the whole the weight of foreign tariffs,
apart from the action of foreign Governments, has been
increased in recent years so as to affect our own growth
injuriously.
Foreign tariffs, it may be said, have become more
effective for another reason. Manufacturing industry
having itself developed abroad, the same amount of
protection given to the foreign indus.try becomes more
efficient than it was. But this, of course, raises the
question of the effect of natural foreign competition,
'which will presently be discussed.
So much for the stimulus to foreign competition due
to high tariffs. With regard to bounties very little need
be said. They have been the subject of much discus-
sion and agitation for various reasons, and in what I
have to say I propose not to touch on the practical
question whether these bounties are injurious, and the
nature of the political remedies that mayor may not