Such conclusive reasoning staggered the assembly.  The orator went on to convince them thoroughly and conclusively by speaking of national independence, national honor, national dignity, national labor, overwhelming importation, tributes, ruinous competition.  In short, he succeeded in determining the assembly to continue their system of obstacles, and I can now point out a certain country where you may see road-workers and Obstructors working with the best possible understanding, by the decree of the same legislative assembly, paid by the same citizens; the first to improve the road, the last to embarrass it.

CHAPTER XI.

ABSOLUTE PRICES.

If we wish to judge between freedom of trade and protection, to calculate the probable effect of any political phenomenon, we should notice how far its influence tends to the production of abundance or scarcity, and not simply of cheapness or dearness of price.  We must beware of trusting to absolute prices:  it would lead to inextricable confusion.

Mr. Protectionist, after having established the fact that protection raises prices, adds: 

“The augmentation of price increases the expenses of life, and consequently the price of labor, and every one finds in the increase of the price of his produce the same proportion as in the increase of his expenses.  Thus, if everybody pays as consumer, everybody receives also as producer.”

It is evident that it would be easy to reverse the argument, and say:  If everybody receives as producer, everybody must pay as consumer.

Now what does this prove?  Nothing whatever, unless it be that protection transfers riches, uselessly and unjustly.  Spoliation does the same.

Again, to prove that the complicated arrangements of this system give even simple compensation, it is necessary to adhere to the “consequently” of Mr. Protectionist, and to convince oneself that the price of labor rises with that of the articles protected.  This is a question of fact.  For my own part I do not believe in it, because I think that the price of labor, like everything else, is governed by the proportion existing between the supply and the demand.  Now I can perfectly well understand that restriction will diminish the supply of produce, and consequently raise its price; but I do not as clearly see that it increases the demand for labor, thereby raising the rate of wages.  This is the less conceivable to me, because the sum of labor required depends upon the quantity of disposable capital; and protection, while it may change the direction of capital, and transfer it from one business to another, cannot increase it one penny.

This question, which is of the highest interest, we will examine elsewhere.  I return to the discussion of absolute prices, and declare that there is no absurdity which cannot be rendered specious by such reasoning as that which is commonly resorted to by protectionists.