Part 9

With what do they reproach free trade? With encouraging the production by foreigners, more skilled or more favourably situated than we are, of commodities which, but for free trade, would be produced at home. In a word, they accuse free trade of being injurious to _national labour?_

For the same reason, should they not reproach machinery with accomplishing by natural agents what otherwise would have been done by manual labour, and so of being injurious to _human labour?_

The foreign workman, better and more favourably situated than the home workman for the production of certain commodities, is, with reference to the latter, a veritable _economic machine,_ crushing him by competition. In like manner, machinery, which executes a piece of work at a lower price than a certain number of men could do by manual labour, is, in relation to these manual labourers, a veritable _foreign competitor_, who paralyzes them by his rivalry.

If, then, it is politic to protect _national labour_ against the competition of _foreign labour_, it is not less so to protect _human labour_ against the rivalry of _mechanical labour_.

Thus, every adherent of the _régime_ of protection, if he is logical, should not content himself with prohibiting foreign products; he should proscribe also the products of the shuttle and the plough.

And this is the reason why I like better the logic of those men who, declaiming against the invasion of foreign merchandise, declaim likewise against the excess of production which is due to the inventive power of the human mind.

Such a man is M. de Saint-Chamans. "One of the strongest arguments against free trade," he says, "is the too extensive employment of machinery, for many workmen are deprived of employment, either by foreign competition, which lowers the price of our manufactured goods, or by instruments which take the place of men in our workshops."*

* Du Système d'impôts, p. 438.

M. de Saint-Chamans has seen clearly the analogy, or, we should rather say, the identity, which obtains between imports and machinery. For this reason, he proscribes both; and it is really agreeable to have to do with such intrepid reasoners, who, even when wrong, carry out their argument to its logical conclusion.

But here is the mess in which they land themselves.

If it be true, a priori, that the domain of invention and that of labour cannot be simultaneously extended but at each other's expense, it must be in those countries where machinery most abounds--in Lancashire, for example--that we should expect to find the fewest workmen. And if, on the other hand, we establish the fact that mechanical power and manual labour coexist, and to a greater extent, among rich nations than among savages, the conclusion is inevitable, that these two powers do not exclude each other.

I cannot convince myself how any thinking being can enjoy a moment's repose in presence of the following dilemma: Either the inventions of man are not injurious to manual labour, as general facts attest, since there are more of both in England and France than among the Hurons and Cherokees, and that being so, I am on a wrong road, though I know neither where nor when I missed my way; at all events, I see I am wrong, and I should commit the crime of lese-humanity were I to introduce my error into the legislation of my country.

Or else, the discoveries of the human mind limit the amount of manual labour, as special facts appear to indicate; for I see every day some machine or other superseding twenty or a hundred workmen; and then I am forced to acknowledge a flagrant, eternal, and incurable antithesis between the intellectual and physical powers of man--between his progress and his present wellbeing; and in these circumstances I am forced to say that the Creator of man might have endowed him with reason, or with physical strength, with moral force, or with brute force; but that He mocked him by conferring on him, at the same time, faculties which are destructive of each other.

The difficulty is pressing and puzzling; but you contrive to find your way out of it by adopting the strange apophthegm:

_In political economy, there are no absolute principles_.

In plain language, this means:

"I know not whether it be true or false; I am ignorant of what constitutes general good or evil. I give myself no trouble about that. The immediate effect of each measure upon my own personal interest is the only law which I can consent to recognise."

There are no principles! You might as well say there are no facts; for principles are merely formulas which classify such facts as are well established.

Machinery, and the importation of foreign commodities, certainly produce effects. These effects may be good or bad; on that there may be difference of opinion. But whatever view we take of them, it is reduced to a formula, by one of these two principles: Machinery is a good; or, machinery is an evil: Importations of foreign produce are beneficial; or, such importations are hurtful. But to assert that there are no principles, certainly exhibits the lowest degree of abasement to which the human mind can descend; and I confess that I blush for my country when I hear such a monstrous heresy proclaimed in the French Chambers, and with their assent; that is to say, in the face and with the assent of the _élite_ of our fellow-citizens; and this in order to justify their imposing laws upon us in total ignorance of the real state of the case.

But then I am told to destroy the sophism, by proving that machinery is not hurtful to human labour, nor the importation of foreign products to national labour.

A work like the present cannot well include very full or complete demonstrations. My design is rather to state difficulties than to resolve them; to excite reflection rather than to satisfy doubts. No conviction makes so lasting an impression on the mind as that which it works out for itself. But I shall endeavour nevertheless to put the reader on the right road.

What misleads the adversaries of machinery and foreign importations is, that they judge of them by their immediate and transitory effects, instead of following them out to their general and definitive consequences.

The immediate effect of the invention and employment of an ingenious machine is to render superfluous, for the attainment of a given result, a certain amount of manual labour. But its action does not stop there. For the very reason that the desired result is obtained with fewer efforts, the product is handed over to the public at a lower price; and the aggregate of savings thus realized by all purchasers, enables them to procure other satisfactions; that is to say, to encourage manual labour in general to exactly the extent of the manual labour which has been saved in the special branch of industry which has been recently improved. So that the level of labour has not fallen, while that of enjoyments has risen.

Let us render this evident by an example.

Suppose there are used annually in this country ten millions of hats at 15 shillings; this makes the sum which goes to the support of this branch of industry £7,500,000 sterling. A machine is invented which allows these hats to be manufactured and sold at 10 shillings. The sum now wanted for the support of this industry is reduced to £5,000,000, provided the demand is not augmented by the change. But the remaining sum of £2,500,000 is not by this change withdrawn from the support of _human labour_. That sum, economized by the purchasers of hats, will enable them to satisfy other wants, and, consequently, to that extent will go to remunerate the aggregate industry of the country. With the five shillings saved, John will purchase a pair of shoes, James a book, Jerome a piece of furniture, etc. Human labour, taken in the aggregate, will continue, then, to be supported and encouraged to the extent of £7,500,000; but this sum will yield the same number of hats, plus all the satisfactions and enjoyments corresponding to £2,500,000 that the employment of the machine has enabled the consumers of hats to save. These additional enjoyments constitute the clear profit which the country will have derived from the invention. This is a free gift, a tribute which human genius will have derived from nature. We do not at all dispute, that in the course of the transformation a certain amount of labour will have been _displaced_; but we cannot allow that it has been destroyed or diminished.

The same thing holds of the importation of foreign commodities. Let us revert to our former hypothesis.

The country manufactures ten millions of hats, of which the cost price was 15 shillings. The foreigner sends similar hats to our market, and furnishes them at 10 shillings each. I maintain that the _national labour_ will not be thereby diminished.

For it must produce to the extent of £5,000,000, to enable it to pay for 10 millions of hats at 10 shillings.

And then there remains to each purchaser five shillings saved on each hat, or in all, £2,500,000, which will be spent on other enjoyments--that is to say, which will go to support labour in other departments of industry.

Then the aggregate labour of the country will remain what it was, and the additional enjoyments represented by £2,500,000 saved upon hats, will form the clear profit accruing from imports under the system of free trade.

It is of no use to try to frighten us by a picture of the sufferings which, on this hypothesis, the displacement of labour will entail.

For, if the prohibition had never been imposed, the labour would have found its natural place under the ordinary law of exchange, and no displacement would have taken place.

If, on the other hand, prohibition has led to an artificial and unproductive employment of labour, it is prohibition, and not liberty, which is to blame for a displacement which is inevitable in the transition from what is detrimental to what is beneficial.

At all events, let no one pretend that because an abuse cannot be done away with, without inconvenience to those who profit by it, what has been suffered to exist for a time should be allowed to exist for ever.

XXI. RAW MATERIALS.

It is said that the most advantageous of all branches of trade is that which supplies manufactured commodities in exchange for raw materials. For these raw materials are the aliment and support of _national labour_.

Hence the conclusion is drawn:

That the best law of customs is that which gives the greatest possible facility to the importation of raw materials, and which throws most obstacles in the way of importing finished goods.

There is no sophism in political economy more widely disseminated than this. It is cherished not only by the protectionist school, but also, and above all, by the school which dubs itself liberal; and it is unfortunate that it should be so, for what can be more injurious to a good cause than that it should be at the same time vigorously attacked and feebly defended?

Commercial liberty is likely to have the fate of liberty in general; it will only find a place in the statute-book after it has taken possession of men's minds and convictions. But if it be true that a reform, in order to be solidly established, should be generally understood, it follows that nothing can so much retard reform as that which misleads public opinion; and what is more calculated to mislead public opinion than works which, in advocating freedom, invoke aid from the doctrines of monopoly?

Some years ago three of the great towns of France--Lyons, Bordeaux, and Havre--united in a movement against the restrictive _régime_. All Europe was stirred on seeing raised what they took for the banner of liberty. Alas! it proved to be also the banner of monopoly--of a monopoly a little more niggardly and much more absurd than that of which they seemed to desire the overthrow. By the aid of the sophism which I have just endeavoured to expose, the petitioners did nothing more than reproduce the doctrine of protection to national industry, tacking to it an additional inconsistency.

It was, in fact, nothing else than the _régime_ of prohibition. Just listen to M. de Saint-Cricq:--

"Labour constitutes the wealth of a nation, because labour alone creates those material objects which our wants demand; and universal ease and comfort consist in the abundance of these things." So much for the principle.

"But this abundance must be produced by _national labour_. If it were the result of foreign labour, national labour would be immediately brought to a stand." Here lies the error. _(See the preceding sophism.)_

"What course should an agricultural and manufacturing country take under such circumstances? Reserve its markets for the products of its own soil and of its own industry." Such is the end and design.

"And for that purpose, restrain by duties, and, if necessary, prohibit importation of the products of the soil and industry of other nations." Such are the means.

Let us compare this system with that which the Bordeaux petition advocates.

Commodities are there divided into three classes:--

"The first includes provisions, and _raw materials upon which no human labour has been bestowed. In principle, a wise economy would demand that this class should be free of duties_. Here we have no labour, no protection.

"The second consists of products which have, _to some extent, been prepared_. This preparation warrants such products being _charged with a certain amount of duty_." Here protection begins, because here, according to the petitioners, begins _national labour_.

"The third comprises goods and products in their finished and perfect state. These contribute nothing to national labour, and we regard this class as the most taxable." Here labour, and production along with it, reach their maximum.

We thus see that the petitioners profess their belief in the doctrine, that foreign labour is injurious to national labour; and this is the _error_ of the prohibitive system.

They demand that the home market should be reserved for home industry. That is the _design_ of the system of prohibition.

They demand that foreign labour should be subjected to restrictions and taxes. These are the means employed by the system of prohibition.

What difference, then, can we possibly discover between the Bordeaux petitioners and the Corypheus of restriction? One difference, and one only--the greater or less extension given to the word labour.

M. de Saint-Cricq extends it to everything, and so he wishes to protect all.

"Labour constitutes all the wealth of a people," he says; "to protect agricultural industry, and all agricultural industry; to protect manufacturing industry, and all manufacturing industry, is the cry which should never cease to be heard in this Chamber."

The Bordeaux petitioners take no labour into account but that of the manufacturers; and for that reason they would admit them to the benefits of protection.

"Raw materials are commodities upon which no human labour has been bestowed. In principle, we should not tax them. Manufactured products can no longer serve the cause of national industry, and we regard them as the best subjects for taxation."

It is not our business in this place to inquire whether protection to national industry is reasonable. M. de Saint-Cricq and the Bordeaux gentlemen are at one upon this point, and, as we have shown in the preceding chapters, we on this subject differ from both.

Our present business is to discover whether it is by M. de Saint-Cricq, or by the Bordeaux petitioners, that the word labour is used in a correct sense.

Now, in this view of the question, we think that M. de Saint-Cricq has very much the best of it; and to prove this, we may suppose them to hold some such dialogue as the following:--

M. de Saint-Cricq: You grant that national labour should be protected. You grant that the products of no foreign labour can be introduced into our market without superseding a corresponding amount of our national labour. Only, you contend that there are a multiplicity of products possessed of value (for they sell), but upon which no human labour has been bestowed [vierges de tout travail humain]. And you enumerate, among other things, com, flour, meat, cattle, tallow, salt, iron, copper, lead, coal, wools, hides, seeds, etc.

If you will only prove to me that the value of these things is not due to labour, I will grant that it is useless to protect them.

But, on the other hand, if I demonstrate to you that there is as much labour worked up in a 100 fr. worth of wool as in a 100 fr. worth of textile fabrics, you will allow that the one is as worthy of protection as the other.

Now, why is this sack of wool worth 100 fr.? Is it not because that is its cost price? and what does its cost price represent, but the aggregate wages of all the labour, and profits of all the capital, which have contributed to the production of the commodity?

The Bordeaux Petitioners: Well, perhaps as regards wool you may be right. But take the case of a sack of corn, a bar of iron, a hundredweight of coals,--are these commodities produced by labour? Are they not created by nature?

M. de Saint-Cricq: Undoubtedly nature creates the elements of all these things, but it is labour which produces the value. I was wrong myself in saying that labour created material objects, and that vicious form of expression has led me into other errors. It does not belong to man to create, to make anything out of nothing, be he agriculturist or manufacturer; and if by production is meant creation, all our labour must be marked down as unproductive, and yours, as merchants, more unproductive than all others, excepting perhaps my own.

The agriculturist, then, cannot pretend to have created corn, but he has created value; I mean to say, he has, by his labour, and that of his servants, labourers, reapers, etc., transformed into corn substances which had no resemblance to it whatever. The miller who converts the corn into flour, the baker who converts the flour into bread, do the same thing.

In order that man may be enabled to clothe himself, a multitude of operations are necessary. Prior to all intervention of human labour, the true raw materials of cloth are the air, the water, the heat, the gases, the light, the salts, which enter into its composition. These are the raw materials upon which strictly speaking, no human labour has been employed. They are _vierges de tout travail humain_; and since they have no value, I should never dream of protecting them. But the first application of labour converts these substances into grass and provender, a second into wool, a third into yarn, a fourth into a woven fabric, a fifth into clothing. Who can assert that the whole of these operations, from the first furrow laid open by the plough, to the last stitch of the tailor's needle, do not resolve themselves into labour?

And it is because these operations are spread over several branches of industry, in order to accelerate and facilitate the accomplishment of the ultimate object, which is to furnish clothing to those who have need of it, that you desire, by an arbitrary distinction, to rank the importance of such works in the order in which they succeed each other, so that the first of the series shall not merit even the name of labour, and that the last, being labour _par excellence_, shall be worthy of the favours of protection?

The Petitioners: Yes; we begin to see that corn, like wool, is not exactly a product of which it can be said that no human labour has been bestowed upon it; but the agriculturist has not, at least, like the manufacturer, done everything himself or by means of his workmen; nature has assisted him, and if there is labour worked up in corn, it is not the simple product of labour.

M. de Saint-Cricq: But its value resolves itself exclusively into labour. I am happy that nature concurs in the material formation of grain. I could even wish that it were entirely her work; but you must allow that I have constrained this assistance of nature by my labour, and when I sell you my corn you will remark this, that it is not for the labour of nature that I ask you to pay, but for my own.

But, as you state the case, manufactured commodities are no longer the exclusive products of labour. Is the manufacturer not beholden to nature in his processes? Does he not avail himself of the assistance of the steam-engine, of the pressure of the atmosphere, just as, with the assistance of the plough, I avail myself of its humidity? Has he created the laws of gravitation, of the transmission of forces, of affinity?

The Petitioners: Well, this is the case of the wool over again; but coal is assuredly the work, the exclusive work, of nature. It is indeed a product upon which no human labour has ever been bestowed.

M. de Saint-Cricq: Yes; nature has undoubtedly created the coal, but labour has imparted value to it. For the millions of years during which it was buried 100 fathoms under ground, unknown to everybody, it was destitute of value. It was necessary to search for it--that is labour; it was necessary to send it to market--that is additional labour. Then the price you pay for it in the market is nothing else than the remuneration of the labour of mining and transport.*

* I do not particularize the parts of the remuneration falling to the lessee, the capitalist, etc., for several reasons:--1st, Because, on looking at the thing more closely, you will see that the remuneration always resolves itself into the reimbursement of advances or the payment of anterior labour. 2dly, Because, under the term labour, I include not only the wages of the workmen, but the legitimate recompense of everything which co-operates in the work of production. 3dly (and above all), Because the production of manufactured products is, like that of raw materials, burdened with auxiliary remunerations other than the mere expense of manual labour; and, moreover, this objection, frivolous in itself, would apply as much to the most delicate processes of manufacture, as to the rudest operations of agriculture.

Thus far we see that M. de Saint-Cricq has the best of the argument; that the value of raw materials, like that of manufactured commodities, represents the cost of production, that is to say, the labour worked up in them; that it is not possible to conceive of a product possessing value, which has had no human labour bestowed on it; that the distinction made by the petitioners is futile in theory; that, as the basis of an unequal distribution of favours, it would be iniquitous in practice, since the result would be that one-third of our countrymen, who happened to be engaged in manufactures, would obtain the advantages of monopoly, on the alleged ground that they produce by labour, whilst the other two-thirds--namely, the agricultural population--would be abandoned to competition under the pretext that they produce without labour.

The rejoinder to this, I am quite sure, will be, that a nation derives more advantages from importing what are called raw materials, whether produced by labour or not, and exporting manufactured commodities. This will be repeated and insisted on, and it is an opinion very widely accredited.

"The more abundant raw materials are," says the Bordeaux petition, "the more are manufactures promoted and multiplied."