BY E. M. JOHNSTON, F.L.S. 167 



That an increase of the cost of her products to the extent of 

 what has been indicated is not a very improbable matter 

 springing from strikes has been foreshadowed by the recent 

 combination among English dock labourers, who succeeded in 

 having their rate of wages raised 2d. per hour. As the 

 average rate of workmen in England is only 4"^''d. per hour, 

 a general increase of l|d. per hour would raise the cost of 

 wages 35 •' per cent.; and as the price of labour is the chief 

 item of cost in all manufactures, it is not improbable that the 

 ■ultimate cost of her manufactures would be raised 20 per 

 cent., thus cutting her off from her previous advantage, which 

 enabled her successfully to outrival all other countries in 

 supplying the external markets of the world with manufac- 

 tures. 



In countries -where food and raw products is or can be 

 produced far in excess of local requirements, the effect of 

 prohibitive tariffs in raising local prices would not have a 

 similar effect. If the cost of living would be nominally 

 raised thereby, it would be exactly or nearly counterbalanced 

 by a nominal 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 dis- 

 advantageous ; 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 labourers 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 marJcet 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 ohstacles, 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 



