GOVERNMENTAL INTERFERENCE. 295 



however, be regarded as wholly exceptional, and that of the United 

 States as partially so. In the case of the former, her recent increased 

 restrictions on foreign commerce, through greatly increased duties on 

 imports, have not, apparently, been due to the acceptance of any eco- 

 nomic theory in respect to trade, or with any reasonable expectations 

 that an extensive prohibition of imports could permanently add to 

 her revenues from customs ; but rather because such action is an es- 

 sential part of what seems to be a larger and fully accepted national 

 policy, which aims to banish and exclude from the empire everything 

 foreign in its nature and origin — merchandise, language, literature, 

 immigration, and religion. While in the case of the latter the fiscal 

 policy of the country for now more than a quarter of a century has 

 been based upon the idea that foreign trade is injurious, and therefore 

 importations, without which there can be no exportations, should be 

 prevented. 



Leaving Russia out of account, the nation that took the initiative 

 in breaking in upon the system of comparatively free international 

 exchanges that had gradually come to prevail among the commercial 

 nations of Europe since 1860 was Austria-Hungary, which, feeling the 

 necessity of securing larger markets for her manufactured products, 

 increased her tariff in 1878, with the avowed expectation of obtaining, 

 through new negotiations, greater commercial advantages or conces- 

 sions, more especially from Germany, than were enjoyed under exist- 

 ing treaties. A similar policy also found favor at about the same time 

 in France, and under its influence the "Anglo-French "and other com- 

 mercial treaties were either allowed to lajjse or were " denounced," 

 and a new general tariff was constructed. The result was not what 

 was probably anticipated. Increased restrictions on imports on the 

 part of Austria, in place of inviting concessions led at once to retalia- 

 tory tariffs by Italy and Germany, and the example thus set has been 

 followed by one European Continental state after another, each raising 

 barrier after barrier against the competition of other nations, until all 

 stability of duties on the numerous frontiers has practically ended, 

 baffling the calculations alike of exporters and importers, and making 

 the development of almost every trade and industry dependent on 

 bounties, subsidies, and restrictions on exchanges, rather than on their 

 own inherent strength and enterprise. 



The following examples are illustrative of recent procedures in 

 continuation of this policy : In 188.5 Germany deliberately excluded 

 Belgian linen from her markets. This act has not as yet been followed 

 by reprisals by Belgium ; but the action of Germany, in twice aug- 

 menting in recent years her duties on breadstuffs (i. e., 1880 and 1885), 

 has been promptly imitated by Austria-Hungary, whose export of 

 cereals was seriously affected. Bnt, notwithstanding these increased 

 duties on the movements of grain between Germany and Austria, the 

 prices of cereals in both of these countries have since continually re- 



