34 POLITICAL ECONOMY 



the price of articles which can be advantageously made there ; 

 and as under perfect free-trade no article would be produced any- 

 where but where it would be advantageously produced, it raises 

 the price paid at each place for those articles, and raises the fund 

 out of which wages arise. Free-trade, therefore, not only in- 

 creases the purchasing power of fixed wages, but actually tends 

 to raise wages. Thus, supposing wine can be more advantage- 

 ously made in France and beer in England, under free-trade 

 the average price of beer in the two countries will be higher 

 than it was in England when excluded from France, and wine 

 with free-trade will be dearer in the two countries than wine in 

 France when excluded from England. But the average price of 

 beer and wine in France and England will, with free-trade, be 

 lower than without it. The Frenchman, if he sets his heart on 

 alternate bottles of Bass and Beaune, will be able to purchase 

 them for less than before ; but the brewer of Bass and the 

 grower of Beaune will get more money with free-trade than 

 without it, and will be able to pay higher wages, until of course 

 by competition his profits are brought down to the average rate. 

 Free-trade can only depress wages of those commodities which 

 were already made at a disadvantage in any given place. If 

 this disadvantage be due to excessive wages, it will depress 

 wages ; but unless the manufacture can bear the average rate of 

 wages, it ought not to be carried on in that place. The work- 

 men have, therefore, in such a case to decide whether they pre- 

 fer to abandon their trade or to work for lower wages ; but here 

 again they are simply in the same position as the employer. 

 Free-trade tends to diminish profits on all articles which cannot 

 be advantageously made in a place, and so a producer of such 

 articles must either abandon his trade or be content with small 

 profits. Free-trade is good for both capital and labour when 

 applied to proper objects ; it is inimical to capital and labour 

 when improperly, that is to say wastefully, employed. It is 

 found expedient to allow the capitalist to consult his own inte- 

 rest rather than prescribe his course of action by law : and we 

 think it will be found equally expedient to allow the workman 

 to consult his interest, and to make no attempt to keep down 

 wages by preventing the Combination necessary to allow work- 

 men to make a bargain. 



When the right to combine is granted, it can only be granted 



