Economic Notes On Insular Free Trade

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It would be impossible to hold a version of the free trade theory so perverse as one which assumed that while any artificial diversion of industry due to home protection must necessarily be pernicious, the foreign protectionist accidentally con- fers upon us a benefit which we cannot confer upon ourselves !
X.
40. A closer examination of the details of our export returns in no way allays the anxiety which theoretical considerations thus suggest. If we exclude coal from the sum of our exports, —
... still more if we also exclude machinery, — there are signs not only of a diminution relative to population, but of a diminution absolute.
Now what moral, if any, is to be dra^v^l from this result ?
I do not press the consideration that by exporting coal we are lessening our national assets — though this is both true and important. Nor yet do I think much illumination is thrown upon the subject by describing coal as '' raw material. "" This is a phrase which easily lends itself to misconstruction ; and if by raw material is meant material whose value is not due in any considerable measure to the expenditure of capital and 22 ECONOMIC NOTES ON labour, then coal is not raw material at all.


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