WHAT SHOULD THE NATION PRODUCE? 77 



but which has come forward with great energy to meet the 

 emergencies incident to war. In the light of recent events and 

 taking into account the entire cost of stimulating this industry 

 in time of peace, has the fostering of the beet sugar industry 

 been justified? The same question arises with respect to wool 

 and other farm products. The experimental method may be 

 better than the bounty or tariff for stimulating industries which 

 will succeed on a small scale. This is true of most farm crops, 

 but it is perhaps not true of most manufactures. 



There are many conditions under which it is desirable to 

 stimulate the production of articles which the farmers have 

 not on their own account found occasion to produce. The 

 absence of production may be due to lack of knowledge of the 

 profits, lack of skill in the new line of production, or it may be 

 due to the fact that the crop is temporarily less profitable than 

 some competing crop, but in the long run would be more profit- 

 able. Where a crop is less profitable than another, and this 

 is due to permanent physical conditions, only the necessity for 

 a self-sufficing national policy will justify stimulating the farmer 

 to produce the crop. But where the conditions which make the 

 crop unprofitable are temporary, social conditions which may 

 be changed, such as sparse population, lack of knowledge or 

 skill, the case is a very different one. It may pay to stimulate 

 immigration and education, and give bounties or tariff protec- 

 tion which will make it profitable for farmers to take up the new 

 lines of production. 



In general, any industry which can be established in a few 

 years, and which when once established will be able to stand 

 on its own merits without government stimulus, should be 

 stimulated during the period of its introduction. During the 

 infancy of the new crop or agricultural industry, the labor and 

 capital expended may add less to the national dividend than 

 some old crop or industry, but this loss is only apparent, and 

 is really chargeable to the capital account of the country if when 

 established the new crop pays better than the one it displaces. 



To summarize, each nation should produce those agricultural 

 products which in the long run will add most to the well-being 



