and fall is to be noted. All the returns given in the first table show a simultaneous rise for several years, beginning with 1876; and having reached a maximum, each shows a progressive fall, likewise lasting over several years. This points to another disturbing factor. It is convincingly shown by the figures for the protected districts in the United Kingdom before, during, and after the period of protection. In 1864-that is, just before the first Contagious Diseases Act came into operation-the proportional figure was 260; ten years later it had fallen to 126; but in 1883 it had risen again to 234, in spite of the protection. Then, protection being removed, it rose to 276, but afterwards fell again progressively to 191 in 1895, without any protection. It is therefore evident that in interpreting the statistics allowance must be made for large fluctuations due to causes quite independent of the protective system. The margin of difference, however, between the British and European returns is so large that, when all allowances have been made, it is impossible to doubt that a considerable degree of real protection is afforded to soldiers by the system. This conclusion is confirmed by the comparatively high returns for the army of the United States, and still more by the Indian statistics. They rose gradually, it is true, during the cantonment system, but when that was dropped disease increased with shocking rapidity. Between 1887 and 1895 the admissions for primary syphilis rose from 75.5 to 174.1 per 1000, and those for secondary syphilis from 29.4 to 84.9.

cannot control, and which tends always to increase, under the discipline maintained, the character of the soldiers themselves. system, while the roll of inscribed women dwindles. The numbers and the procedure with regard to admission into hospital, no alone are sufficient to prove the failure of the procedure; for in-doubt all affect the returns. Further, a sort of epidemic rise stance, 311 and 270 in Dresden and Munich respectively (Zehnder 1891), both capital towns and cities of pleasure containing over 300,000 inhabitants. Cologne, with only half the population, had double the number on the register at the same time. In Paris, which may be called the headquarters of Western vice, the disproportion between registered and clandestine prostitution has reduced the whole system to an absurdity. The number of women on the roll is not a tenth of the estimated number of prostitutes; nor is Berlin, with about 3000 on the register, any better off. In Bordeaux, Brest, Lille, Lyons and Marseilles the same process is going on (Reuss). It follows that the protection of health, which is the object aimed at by registration, is delusive in an equal degree. There are no means of ascertaining the amount of venereal disease existing in any town or country, except in Norway, and consequently, no data for comparing one period or one place with another; but we know that all forms of such disease are still very prevalent in all large European towns, in spite of the system. The only exact figures available are the military returns, which are of some value. It is in garrison towns of moderate size that compulsory registration is likely to be most efficiently carried out and to produce the most decided results, because the women with whom soldiers consort are by their character and habits least able to elude the vigilance of the police. The following table gives the proportion of admissions to hospital from all forms of venereal disease in the German, French, Austrian and British forces for twenty years from 1876. It may be added that the proportion in the Russian army is almost identical with the French, while the Italian figures are slightly higher than the Austrian.do to a considerable extent fulfil the purpose of protecting health. It is therefore unnecessary to give them:

German French.

Rus- Atts-
sian. trian.

Italian.

U.S.A.

British British Dutch (Home). (India) (Indies) 27.2 43.6 43.0 63.5 71-3 77-4 203-6438-0 455-6 It is clear at once that troops in the East stand upon an entirely different footing from those in the West, the Dutch figures being even higher than the British; we may therefore put them aside for the moment. Comparing the rest, we notice that not only are the British figures enormously higher than the other European, but the latter also show very large discrepancies; and since all the foreign troops are under the same protective system, we may conclude that other factors must be taken into account.

The

The broad conclusion is that under special conditions, and when rigidly enforced, registration and medical examination

Their failure to do so among the population at large and under the ordinary conditions of life is not surprising when we regard the amount of venereal disease which still occurs even among soldiers protected by the most rigorous measures and under the most favourable conditions.

A general view of the whole subject suggests no pleasant or hopeful conclusions. Prostitution appears to be inseparable from human society in large communities. In different countries and ages it has in turn been patronized and prohibited, ignored and recognized, tolerated and condemned, regulated and let alone, flaunted and concealed. Christianity, the greatest moral force in the history of mankind, has repeatedly and syste matically attacked it with a scourge in one hand and balm in the other; but the effect has been trifling or transient. Nor have all the social and administrative resources of modern civi lization availed to exercise an effective control. The elementary laws on which prostitution rests are stronger than the artificial codes imposed by moral teaching, conventional standards or legislatures; and attempts at repression only lead to a change of form, not of substance. It survives all treatment; and though it may coexist with national vigour, its extravagant development is one of the signs of a rotten and decaying civilization. In Western communities the traffic is not carried on so openly as in the East, nor is it exploited for purposes of public revenue, as among the ancients and in the middle ages; a veil of reticence and secrecy, for the most part of a transparently flimsy character, is thrown over it, but whatever is gained in public decency is counterbalanced by other attendant evils. Two, in particular, are fostered by the policing of prostitutes. One is the system of blackmail levied by the executive. The scandal has been most notorious in the United States, but it exists everywhere, and is a constant source of profound corruption. The other is the growth of the most degraded class that ever disgraced the name of man-the creatures who live upon the earnings of individual prostitutes, with whom they cohabit. They are called souteneurs in France, louis in Germany, cadets in New York, and by various slang names in Great Britain. They are all criminals. They flourish chiefly on the continent of Europe, where they exist in large and ever-increasing numbers; but they find their way everywhere, and are a dangerous

If such an account of the features of a protective policy is objected to on the ground that free trade countries like Great Britain have also adopted some of them, it may be replied that in so far as they have done so they have adopted the principle of protection, namely, that government shall adopt a positive policy looking towards the development, by government aid if necessary, of new branches of commerce and industry and the firmer establishment of old branches. It may further be pointed out that the countries which have adopted the protective policy most fully-the United States, France, Germany and Russiahave most consistently followed out the policy here indicated and in all these countries it has been the so-called protectionist party which has identified itself most fully with the comprehensive policy here suggested.

rivers and harbours, &c.; and, finally, the development, at a few years, would result in the establishment of the industry public expense, of a scheme of technical and commercial edu-on such a firm basis that all duties might be abolished. The cation-lower and higher-adapted to discover and train all introduction of this form of protection, i.c. discriminating duties the talent in the community available for developing the in- upon imported goods, was greatly assisted, if not originally dustry and commerce of the country. caused, by the fact that the new government needed money which could most easily be obtained by customs duties. Thus all those parties which were opposed to direct taxes joined their efforts with those interested in securing protective duties, in order to commit the government to the policy of basing its revenue system on a tariff on imports. To these considerations must be added the further one that the country had just thrown off political dependence on Europe, and felt that it must now become industrially independent also, if it were to be a great nation. These influences, then, namely, firstly, the desire of the statesmen of the time to create a revenue system for the Federal government which would make it absolutely independent of the states; secondly, the wish to develop an industry which would serve the needs of the new country while it promoted its complete independence of the Old World, conspired to commit the Federal government from the beginning to a policy of protection based upon a system of discriminating duties. At the same time a system of discriminating tonnage dues and prohibitory regulations relating to foreign shipping in the coasting trade was adopted to promote and foster the shipping interest.

Economic
Doctrine.

As a doctrine, protection is the set of principles by which this policy of government aid to industry is justified, and these principles have been elaborated hand in hand with the development of the so-called protective policy sometimes outrunning its actual application and advocating its further extension, more often lagging behind Industry and commerce began to thrive as never before, and seeking for means of explaining and defending what had largely because of the absolute free trade which the Constitution already been done. The present development of the system and had secured among the states of the Union. The long struggle theory of protection is a result of the growing predominance of between France and Great Britain, extending from 1806 to capitalism in modern society, combined with the tendency of 1812, for the possession of the commerce and the trade of the modern politics towards the organization and development of world, combined with the retaliatory measures of the American great national states. with the resulting desire to secure their government itself, practically destroyed American commerce industrial as well as their political independence. It has been for a time, and finally led to the British-American War of 1812, further favoured in certain ways by the fact that the financial which closed in 1815. The financial system of the Federal needs of modern states require a resort to indirect taxation, government during this war was based on getting the largest thus making it easier for the capitalistic forces to exploit the returns from the customs, so that the duties were screwed tax system for their own benefit; while the wars of the 19th up still higher. The ten years period of non-intercourse, while century have favoured in many ways the tendency towards it had seriously injured American commerce, had fostered the the adoption of special means, like high discriminating duties, growth of American manufacturing; and when the close of the to accomplish this end. Hand in hand with this has gone a War of 1812 brought with it an enormous influx of foreign goods, steady tendency to see in the state a powerful means of pro- particularly from the plethoric warehouses and factories of moting the development of trade and industry, and a growing England, it looked for a time as though the new American indusdisbelief in the more extreme forms of the free trade doctrine, tries were destined to vanish as rapidly as they had grown up. such as the type known as the Manchester School, the theory And now for the first time appeared a strong, well-developed, of the laissez faire, laissez passer school of economics and politics. capitalistic party, which was, in spite of some drawbacks, Protection, both as a doctrine and policy, can be best under-destined to grow until it became one of the most characteristic stood by examining the course of its development in those countries adopting it most consistently. Germany and the United States offer the two striking examples of great modern nations adopting a system of protection and developing under its influence. They may in a certain sense serve as types of the kind of state which in the 19th century accepted and defended, in its politics at any rate, the so-called protective system. In both cases the high protective system, was associated with the development of nationality, of industry, of capitalism, and of a financial system which favoured the growth of certain elements of the protective policy.

United
States.

The protective system in the United States began with the adoption of the Constitution in 1789, and found its first formal defence in the celebrated report of Alexander Hamilton on manufactures. The argument and the movement were largely academic. As there was no strong manufacturing interest in existence, so there was no organized capitalistic effort to secure manipulation of the tariff duties in the interest of special industries. There was general agreement, however, that it would be desirable to develop a manufacturing industry in the colonies if it were practicable. A high degree of natural protection was already afforded by the cost of transportation. It was felt, therefore, that a small duty on manufactures would probably serve the purpose, since the development of the manufactures would favour the production of raw material, which would therefore need no special encouragement. It was also felt that a small duty, continued for XXII 8*

features of the politics of the republic.

The manufacturers of the country determined the tariff policy of the country, and with few reverses pursued a steadily advancing course of victory down to the close of the 19th century. They secured the maintenance of high duties at the close of the war of 1812, and managed to increase them steadily until the reaction of 1830-1833, when they were forced to content themselves with a lower rate, which continued, with a slight interruption in 1842-1846, until the outbreak of the Civil War in 1861. This was an opportunity which they knew how to utilize to the greatest advantage. During the war, when the government was forced to exploit every possible source of revenue, the protectionist party knew how to turn the necessities of the government to its advantage. The rate of duties was pressed ever higher; and when the war closed, and the taxes could again be lowered, the protectionist managers knew how to lower or remit altogether the non-protective duties, and thus keep high, and even advance to a still higher point, the duties which protected them from foreign competition.

In the meantime the country was turning from agriculture to manufactures at an unprecedented rate. The manufacturing party was becoming ever stronger and more aggressive. As it had also been the national party, it profited by the enormous development of the nationalist sentiment during and after the war. It now became patriotic to favour the development of a national industry. It was treason to advocate free trade-that had been the policy of the slave-holders' party, and the Slave

the further development of the protective system already adopted in the United States.

of talents and dispositions which discriminate men from each other. (5) A more ample and various field for enterprise. (6) In many cases a new, and in all a more certain and steady The third great name in the history of protection is that of demand for the surplus produce of the soil. (7) A more lucrative Henry C.Carey, an American, in some ways the most distinguished and prosperous trade than if the country were solely agricultural. and most influential of the followers of Hamilton and Carey: Among the feasible means of promoting the development of List. He was at first a strong free trader, then a Patten. such an industry he mentions the following: (1) Protective protectionist who believed in protection as a preparation for duties, or duties on foreign articles which are the rivals of the free trade, and finally an uncompromising advocate of protection domestic ones, to be encouraged. (2) Prohibition of rival articles in all circumstances and for all nations. In him and in Simon or duties equivalent to prohibition. (3) Prohibition of the M. Patten, the last, and in many respects the ablest, of the exportation of the materials of manufactures. (4) Pecuniary apologists for protection, we have the theoretical development bounties. (5) Premiums. (6) Exemption of the materials of corresponding to the practical outcome of protection as a commanufactures from duty. (7) Drawbacks of the duties which are prehensive all-embracing scheme extending protection to all imposed on the materials of manufactures. (8) The encourage- branches of industry alike-agriculture, manufacturing and ment of new inventions and discoveries at home, and the intro- | mining-and aiming to be permanent in its form and policy. duction into the United States of such as may have been made in As Patten expresses it: Protection now changes from a temother countries; particularly those which relate to machinery.porary expedient to gain specific ends (such as the establishment (9) Judicious regulations for the inspection of manufactured of manufactures), to a consistent endeavour to keep society commodities. (10) The facilitating of the pecuniary remittances dynamic and progressive. Protection has become part of a from place to place. fixed national policy to increase the value of labour with the increase of productive power, and to aid in the spread of knowledge and skill, and in the adjustment of a people to its environment." The object of protection has now become, in the view of the theoretical American protectionist, not an approximation to European industrial conditions, but as great a differentiation from them as possible. Carey's works were translated into the leading European languages, and contributed doubtless to the spread of protectionist ideas, though the extreme form in which his views were expressed, and the rambling illogical method of exposition, repelled many who might otherwise have been attracted by the course of his thought.

The above suggestions contain the outline of a comprehensive scheme for developing the manufacturing resources of the country, and the United States has subsequently adopted, in one form or another, almost all of these propositions. Hamilton considered that the duties, &c., would not have to be very high or very long continued in order to accomplish their legitimate ends, after which they would become unnecessary, and would naturally be abolished. He conceded that, generally speaking, import duties were taxes on the customer, and therefore burdens-but burdens which might well be temporarily borne for the sake of the ultimate advantage arising from cheaper goods and diversified industries. He emphasized also the advantage of a home market for agricultural products, and seemed to think that the United States had to pay the cost of transportation both on the agricultural products it exported and the manufactured goods it imported. This report remained the armoury from which the protectionists drew their weapons of offence and defence for two generations, and it has not yet ceased to be the centre around which the theoretical contest is waged even to-day in Germany and France as well as in the United States.

List.

Economists of other schools, with the exception of the more rigid British free traders, have allowed a relative validity to the doctrines of List; and even among older British economists, Mill and some of his disciples conceded the logical possibility of quickening the development of an industry by import duties in such a way as to result in more good than harm, though they have hardly been willing to acknowledge that it is practically possible. The modern historical school of political economists have generally admitted the reasonableness of protective policies at certain times and places, though usually finding the justification in political and social considerations rather than in economic. And while the British objections to protectionism in any form have been widely upheld by the more conservative economists in England, the new political school of "tariff-reform and colonial preference" has found strong support at the hands of such British authorities on economics as Professors Cunningham, Ashley and Hewins, or the authors of Compatriots' Club Essays 1906 (J. L. Garvin and others), whose advocacy of a national policy recalls the work of Hamilton and List. (E. J. J.)

The next great theorist in this field was the German. Friedrich List, who, while an exile in the United States, became imbued with protectionist ideas, and after doing substantial service for them in the country of his adoption, returned to Germany to do battle for them there. He published his National System of Political Economy in Germany in the year 1841. It had great and immediate success, and has exercised a wide influence in Europe on theoretical discussion as well as on practical politics. List. like Hamilton, looked on protection as a temporary system designed to facilitate the passage of a country from an agricultural to a manufacturing state He accepted AUTHORITIES.-P. Ashley, Modern Tariff History (London, 1904); free trade as generally and permanently true, but suited for W. J. Ashley. The Tariff Problem (London, 1904); A. J. Balfour, actual adoption only in that cosmopolitan era towards which Economic Notes on Insular Free Trade (London, 1903); G. Blondel, the world is progressing. But in order to prepare for this cosLa Politique protectioniste en Angleterre (Paris. 1904): F. Bowen, American Political Economy (New York, 1875): B. Braude. Die mopolitan period it is first necessary for each nation to develop Grundlagen und die Grenzen des Chamberlainismus: Studien zur its own resources in a complete and harmonious manner. A Tarifreformbewegung im gegenwärtigen England (Zurich, 1905); comprehensive group of national economies is the fundamental J. B. Byles, Sophisms of Free Trade (London, 1903); G. Byng, Protec condition of a desirable world economy; otherwise there would Philadelphia, 1858-1859), Harmony of Interests-Agricultural, tion (London, 1901); H C. Carey, Principles of Social Science (3 vols., be a predominance of one or of a few nations, which would of Manufacturing and Commercial (Philadelphia, 1873); C. H. Chomley, itself constitute an imperfect civilization. Protection is a means Protection in Canada and Australasia (London, 1904): W. Cunningof educating a nation, of advancing it from a lower to a higher ham. The Rise and Decline of the Free Trade Movement (London, state. He admits that it may involve a loss, but only in the 1904), GB Curtiss, Protection and Prosperity: an Account of Tariff Legislation and its Effect in Europe and America (1896); sense that money expended for an education or an educational W. H. Dawson, Protection in Germany (London, 1904); E. Dühring, system is a loss, or that money spent for seed corn is a loss To Kritische Grundlegung der Volkswirthschaftslehre (1886): Kursus the cosmopolitan system of Adam Smith, List opposes the der National- und Socialökonomie (1873); Dumesnil-Marigny, Les national system as a preliminary and necessary stage. He Libre-échangistes et les protectionistes conciliés (1860); Ganilh, Théorie de l'économie politique (1822); G. Gunton, Wealth and Progress favours the imposition of duties as the most efficient means of (New York, 1887); Principles of Social Economics (New York, 1891); effecting the protection which he has in mind. Agriculture will Alexander Hamilton, Report on the Subject of Manufactures, combe sufficiently protected by the constant demand for its products.municated to the House of Representatives, 5th December 1791; H. M The essence of his larger work is contained in a pamphlet pub-operation of defensive duties in the United States (New York, 1886); Hoyt, Protection v Free Trade, the scientific validity and economic lished in Philadelphia in 1827, entitled Outlines of American E. J. James, Studien über den amerikanischen Zolltarif (Jena, 1877); Political Economy It is, in fact, a series of letters advocating F List. Das nationale System der politischen Ockonomie (Eng. trans.