RECIPROCITY THE ESSENCE OF FREE TRADE 175 



consistent and clearly marked course of action we can, to a 

 considerable extent, prevent other nations from injuring 

 us by their various phases of protectionist policy, while 

 we retain whatever benefits free trade can give us ; 

 and further, that while thus ourselves carrying out the 

 essential spirit of a free-trade policy, we shall be in posses- 

 sion of the most powerful conceivable engine to convert 

 others to its adoption. 



Before proceeding to explain my plan, let us see what 

 other schemes have been put forth by the advocates of 

 reciprocity. As far as I can make out, they are two only : 

 the one to put a small uniform ad valorem import duty on 

 all foreign-manufactured articles ; the other to arrange, 

 by treaties of commerce or otherwise, a scheme of re- 

 ciprocal import duties which shall be adjusted so as to 

 benefit both parties to the arrangement. The objection 

 to the first is, that it is giving up the whole principle of 

 free trade, and neither public opinion nor the legislature 

 would sanction it ; while the second is vague, and involves 

 innumerable questions of detail, and equally gives up the 

 principle of free trade with the first. To these objections 

 I add one of my own, that by neither plan could we secure 

 that stability and unchecked development of our resources 

 which is the most valuable of all the results of complete 

 free trade. We should not thereby prevent other nations 

 from influencing our industries prejudicially when with 

 changes of government come changes of policy. Bounties 

 might still be given or increased, import duties might be 

 raised or lowered, and the capital invested in some of our 

 industries in order to supply both a home and foreign 

 demand now, might be greatly depreciated or even 

 rendered worthless by the unexpected action of some 

 foreign protectionist minister a few years hence. 



Hoping to get some further light on this subject, I 

 turned to Professor Fawcett's volume on Free Trade and 

 Protection, feeling sure that I should there find the 

 question fairly stated and the reasons against " reciprocity " 

 fully set forth. To my great astonishment, however, I 

 find that Mr. Fawcett's arguments are entirely directed, 

 not against " reciprocity " of import duties, as I understand 



