PRESIDENTS ADDRESS—SECTION F. 145 
exactly or nearly counterbalanced by a xominal increase in earnings 
locally. Thus, for example, if the consumer had to pay 20 per 
cent. extra for all articles of consumption, it is probable that 
even this would not be disadvantageous ; for it is almost certain 
that the true purchasing powers of labour—relative to staff of 
life—would be very little altered, as the price of labour would 
also tend to approach an increase of 20 per cent. 
But there is one effect which this would have upon a food- 
producing country, which would show a decided contrast with a 
similar rise of wages in a manufacturing country such as England, 
viz., it would draw to the former the manufacturing labourers 
of manufacturing or densely-peopled centres; for instead of 
cutting off sources of employment, as in England, it would of 
necessity require her to import /adourers to produce those wants 
locally, or a great portion of them, which formerly had been 
supplied to her by the manufactures of external labour. That is, 
broadly, its main effect would be to increase the local labour 
market or widen the field for the employment of local labour. 
At first this would also have the effect of diminishing the 
aggregate extent of external commerce ; but it need hardly be 
discussed, all things being fairly equal as regards natural sources, 
that the supply of exchanges by home products, instead of by 
foreign, is all in favour of diminution of obstacles, and therefore, 
upon the whole, advantageous. . . . This problem has already 
been worked out in the United States of America, and whatever 
the ultimate effects may be when local. population approaches 
too close to her limits of natural powers for producing food and 
necessary raw materials for her own people, it is undoubted that 
60 millions would not be profitably employed and well supported 
if it were not for her policy of favouring the creation of her own 
wants as far as possible by the energies of /ocal labourers. 
It must be granted, however, that the policy which is advan- 
tageous to a rich food and raw-producing country, such as 
America, would be annihilation to a country such as England, 
where the population by far exceeds her natural sources of supply 
as regards food and other essential raw products. 
A country so cireumstanced must maintain a Free Trade policy 
or perish. With countries thinly populated, possessing illimitable 
sources of natural wealth, including soil, climate, and all 
conditions favourable for the production of food and raw products 
in excess of local wants, it must inevitably follow that the 
tendencies and influences arising from the desire to extend the 
local field of employment must be in the direction of Protection, or 
restrictions upon foreign trade. It is the conditions of the various 
countries which determine means to ends.- In one country the 
means 18 Protection, in the other Free Trade ; but the ezd in both 
cases is the same, viz., the best available mode of supplying the 
greatest amount of satisfactions to each individual (including local 
