Page 167 - clra62_0019-(GIPE)
P. 167

PROTECTION  FOR  MANUFACTURES  IN NEW COUNTRIES  159
                  case are the  manufactures  of a  description other than
                  those  natural1y  suitable  to a  new country, which  are
                  independent of a  Protective tariff.  I  do  not  consider
                  exceptions  the  cases  where  the  colonies  in  question
                  happen  to  manufacture  for  export,  this  being  also  a
                  natural development.
                    The experience  of New South Wales  and Victoria
                  is therefore in  accordance with what a  common  sense
                  consideration  of the  question  would  teach  us.  The
                  tariff of one is bad, but the bad tariff and the good alike
                  fail to set up the factory manufactures.  This cannot be
                  done at all,  owing to the want of a market.
                    We may sum up, then, by repeating  that the whole
                  foundation of the Idea in  Mill is based on  a misunder-
                  standing.  There is natural variety of industry, even in
                  an agricultural country, to a much  greater extent than
                  is commonly supposed.  There are  also natural manu-
                  factures,  employing 5 to 10 per cent. of the population,
                  for  which  Protective  duties  are  wholly  unnecessary.
                  Factory  manufactures  of other  kinds, again,  have  no
                  such place in the economy of a  self-contained  country
                  as is often assumed.  Even in a manufacturing country
                  for  export, like  England,  they are  smaller than  com-
                  monly  supposed;  and  we  can well  believe  that  in  no
                  country  can  the  factory  manufactures, for  home  con-
                  sumption only, ever occupy much more than 5 per cent.
                  of the working population.  But for such manufactures,
                  as a  rule, a new country has not a large enough market.
                  "Ve can see, then, that before Protectionists can discuss
                  their theory as to the benefit of import duties in setting
                  up manufactures so as to give variety of industry, they
                  should discuss the preliminary question as  to whether
                  substantial  variety  can  be  given  that  way at  all.  If,
                  instead of using general language, the Protectionists to
                  whom  Mill  appears  to  give  assent  had said that pos-
                  sibly, but not probably, by means of import duties I  or
                   2  per cent. of the population that would not otherwise
                   be occupied in manufacturing might come to be so oc-
   162   163   164   165   166   167   168   169   170   171   172