The Tariff Problem

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/ This presents a problem for the importing Jcountry such as had not arisen when the fathers of Political Economy wrote, and which they there- I fore did not contemplate — a problem towards the wise handhng of which their reasoning gives us little, if any, help. " Buy in the cheapest market and sell in the dearest " did not mean with Adam A POLICY OF INDUSTRIAL DEFENCE. 115 Smith that it was always wise to buy in the momentarily cheap market regardless of all other circumstances. It meant, rath
...er, to buy in those markets which would be continuously and perma- nently cheaper, if every country were left free to utilise its own peculiar " advantages." What we have to face in England for some time to come are periods of temporarily cheap imports, followed by a return of the old prices each time the wave of prosperity returns in the exporting country. It would be to overlook the most obvious facts to assert that such importation is an unmixed evil. To the complaints of the home manufacturers who find their domestic market invaded it can always be retorted that the consumer benefits by the low prices ; and these consumers are often other manufacturers to whom the imports are raw materials.

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