FREE TRADE vs. FAIR TRADE.
Mr. Blood’s Letter to Mr. Bright.
32, Charlotte Street, Birmingham.
Dear Sir,—The Birmingham newspapers have recently
published a letter written to you by Mr. W. G. Lord, of
Bradford, on the subject of Free Trade. The letter is somewhat
brief, and it struck me that, though you might not feel called
upon to enter into correspondence on such subjects with persons
who are not your constituents, possibly you might feel more
disposed to discuss the question with an Elector of Birmingham.
You say, to imagine that the bad trade from which Bradford
is suffering is due to hostile tariffs, is absurd; and then, as
though in your opinion it was an unanswerable objection to
those who contend that hostile tariffs have a great deal to do
with it, you add, “because you have had great prosperity with the
same tariffs.” Now, I venture to submit that this is no argument
at all,—that it is merely a statement based upon false conclusions.
You are, or at least you ought to be, aware, that the
circumstances under which the trade of this country is carried
on have entirely changed during recent years. At the period
when, as you say, we “enjoyed great prosperity with the same
tariffs,” the foreign nations, which now exclude our manufactures
from their markets, were not sufficiently advanced to
do without our assistance. Whether they liked it or not, they
were compelled to buy of us largely, and, therefore, comparatively
speaking, their tariffs were harmless. Now they can not
only dispense with the bulk of our manufactured goods, but,
in many branches of industry, can also compete with our
manufacturers in our own markets. Hence, hostile tariffs, which
were once of little moment, have become serious, and if you
look at the question from this point of view, you will probably
see that absurdity is not with those who cry out against the
hardships of foreign tariffs, but with those who, like yourself,
shut their eyes to the changes going on around them, and
blindly adhere to an old system after it has become obsolete and
absolutely mischievous. You cannot be unaware that, since
the great Exhibition of 1851, the commercial relations of this
country with other nations of the world have undergone an
entire change for the worse. Then it did seem as though
England was to become the “workshop of the world,” as the
apostles of Free Trade predicted she would be. But at that
Exhibition the manufacturers of Europe and America were
invited to inspect our machinery, were shown all the intricacies
of its mechanism, and made familiar with the secrets of our
manufactures. Among our visitors at that period were experts,
whose eyes were open wherever they went, and who have since
made good use of the information obtained. With equal good
nature—or shall I call it folly—we have sent our machinery
abroad, and skilled workmen to work it, without any
regard to consequences, and hence foreigners, who but for
the open-hearted candid nature of John Bull, would still
have been in the background, are now fully ahead of us in a
great many branches of manufacturing and commercial enterprise.
Unprejudiced persons cannot fail to see that arguments
based on a state of things which existed thirty or forty years
ago, have no force, now that state of things has passed away;
and your contention that hostile tariffs have nothing to do with
our commercial depression, because under the same tariffs we
enjoyed prosperity years ago, falls to the ground. On the
contrary, unless our prosperity is to still further decline, it
becomes a matter of vital necessity that in those manufactures
in which England can still keep the lead, she shall have the
same privileges as she ungrudgingly gives to others; or that we
should be protected in our markets from those who refuse us
admission to theirs.
You go on to say “to suppose your case will be improved by
refusing to buy what you want from foreigners, to punish them
for not buying freely from you, is an idea and scheme only
worthy of the inmates of a lunatic asylum.” But, if you
seriously believe this statement, you must believe also that the
astute, far-seeing citizen of the United States,—the plodding,
theorizing German,—the thrifty and ingenious Frenchman,—and
the hard-headed, practical Russian,—the intelligent
Italian,—and even the hard-working Swede and Norwegian,
are all lunatics. Are you prepared, seriously, to assert this as
your belief? The fact is, you adopt an ingenious way of misstating
a principle. No one thinks of refusing to buy from the
foreigner when it is to our interest to do so. In our commercial
relations one with another, it is usual for every man to buy
from one who will probably become a return purchaser, or to
put it in plainer language, each man supports the person who
will be most likely to support him in return. But in buying
from the foreigner, we are buying from the man who will never
buy from us if he can possibly help it, and leaving those who
would be our customers in return to starve.
Again, you say, that “to return to Protection under the name
of Reciprocity, is to confess to the Protectionists abroad that we
have been wrong, and that they are right.” But the fact is, no
such confession is necessary. The Protectionist abroad knows
too well that he is right, without any confession on our part.
The vast progress of the United States, the immense strides
they have made in commerce, manufactures, and wealth—strides
so vast that our own progress, even at its greatest, is insignificant—will
convince every intelligent American that the
principle of protection to native industry is, under many circumstances,
wholesome and necessary. The same may be said of
France, which has made even greater progress in some particulars
than ourselves; and of Russia, which, under protection,
seems likely to come to the fore.
Again, you ask, “Who dares to propose another sliding scale
or fixed duty on the import of foreign corn?” Are you not aware
that even amongst your own constituents there is a large party
who have the courage to do this? You take it for granted that
good seasons would enable agriculturists to carry on their
avocation with profit. But many persons who have the best
practical acquaintance with the subject think differently. If,
in the result, they should prove to be right, are you prepared to
see the bulk of the land of the country go out of cultivation
rather than impose a duty on the import of foreign corn? With
agriculture ruined, and its capital absolutely gone, what would
become of our home trade? But the fact is, we don’t want any
foreign corn at all. Our Colonists, who could be induced to trade
with us on reciprocal terms, could supply us with all the corn we
want, even though not one single quarter of foreign grain found
a place in our markets. The result might be a very trivial rise
in the price of bread-stuffs for a few years, but I venture to
submit that the disadvantage of this rise would be more than
counterbalanced by larger revenues from imports, which would
result in reduced direct taxation, not only to the farmer, but to
all classes, and by the increased occupation for the artisan and
labourer, which would result from the extension of our Colonial
markets, and from keeping our home trade to ourselves.
As this is a question which, at the present time, is agitating
the public mind, and every one is looking for some practical
solution of existing difficulties, I shall be glad to have your
opinion on the views expressed in this letter. Your previous
communication has been widely circulated through the Press,
and, therefore, I purpose in due course, to publish this letter also,
together with any reply with which you may favour me.
Yours faithfully,
FREDERICK BLOOD.
Mr. Bright’s Reply.
Duchy of Lancaster Office, London, W.C.
Sir,—Mr. Bright desires me to acknowledge the receipt of
your letter of the 27th instant.
In reply, Mr. Bright directs me to say that he has neither
time nor inclination to enter into a correspondence with a
gentleman who believes that we need no supplies of corn from
foreign countries, and who would impose duties on its importation.
He fears that no facts and no arguments can be placed
before such a person with any advantage.
I am, sir, Your obedient servant,
BARRINGTON SIMEON.
Frederick Blood, Esq.,
32, Charlotte Street,
Birmingham.
Mr. Blood’s Reply to Mr. Bright.
32, Charlotte Street, Birmingham.
Sir,—I am in receipt of your reply to my previous communication
on the Subject of Free Imports. You decline to discuss
the question, and in adopting this course, possibly you act
wisely. There is so very little to be said from your point of
view in favour of our existing system, that I can understand
your reluctance to state your case fully. Whether dignified
silence would not have been preferable to the uncourteous and
dogmatic assertions in which you take refuge, is another matter.
You seem surprised that any one should believe in the possibility
of our doing without “Foreign” wheat, but is your surprise
real or feigned? Do you wish to mislead the public by inducing
it to attach a wrong meaning to the word “foreign?”
You know the meaning I attach to it, and you know further
that my statement was absolutely true, and that it has often
been made in public by persons who have a greater claim to a
hearing on this subject than yourself.
I stated, that our Colonies and Dependencies could supply us
with all the wheat we require, and that we could do without
any foreign supply. Do you doubt this statement? If so,
the doubt is scarcely creditable to your intelligence, or to your
industry in making yourself acquainted with the facts. You
may fix yourself on the horns of which ever dilemma you please,
but the public will hold you guilty of a want of information,
which is unpardonable, or else of a desire to mislead. Happily,
our Colonies are not foreign powers, however much the policy
of the government of which you are a member has recently
tended to drive them to become such. Hence my statement
holds good. I can only imagine that you presumed upon the
scanty information of many of your constituents as to the
difference in the meaning of the two words “Foreign” and
“Colonial,” and trusted to throw dust in their eyes by this
means. If your opinions require to be supported in this dishonourable
manner, I can only say that they are manifestly
unsound, and the sooner they are renounced the better for your
political reputation. The position you hold in Her Majesty’s
Government, although a lucrative one, is generally regarded as a
sinecure, and, therefore, I fail to see how you can plead want of
time as an excuse for writing a discourteous and contemptuous
letter to one of your constituents, who wrote you in perfect
good faith. But I shall leave it to public opinion to judge as to
whether such conduct is worthy of the prefix of “Right
Honourable” which is now generally attached to your name.
It is scarcely necessary to add that no one proposes to tax the
imports of Colonial wheat to the same extent as that of foreign
growth, and for this reason; the Colonists are willing to adopt
a differential duty,—that is, to trade with us on something like
reciprocal terms. The foreigner will take no steps towards
meeting us fairly; hence the difference between the two cases
is apparent at once. Supposing a duty of 20 per cent. were
imposed on Foreign, and 10 per cent. on Colonial, wheat, it is
well known that this would not increase the price of the four-pound
loaf more than a half-penny. To an average working
man’s family this would not enhance the cost of living more
than fourpence a week, and as it can easily be shown that
increased employment for labour would follow on the judicious
adoption of import duties, the working classes would be large
gainers, especially as the revenue derived from these duties
would enable us to reduce our other taxation.
In a former letter to me you stated that the price of the loaf
would be doubled if we had not Free Trade in corn. It would
be interesting to know how you arrived at this conclusion. I
fear your usual method of assertion, without any endeavour to
arrive at the truth, was at the bottom of it. The statement
was altogether without foundation, although, no doubt, many
people who have no time to think out the matter for themselves
were influenced by it. You are now legislating for the people
of Ireland, but has it never struck you that the immense flood
of importations from America, which has been poured upon
Ireland, has been the cause of much of the suffering which that
country has endured? It has rendered agriculture unprofitable
both in Ireland and in England, and therefore labourers have
been thrown out of work, while farmers, especially the smaller
ones, have been steadily impoverished. The natural result of
poverty is sedition. The agricultural classes having no money
to spend, all classes have suffered. Just now there is a cry for
fostering manufactures in Ireland, but how many manufactures
can you foster in which foreign competitors cannot undersell
you in the streets of Dublin? If matters go on, they may
perhaps eventually end in an attempted revolution, and if not
put down with the strong arm of force, there will be a separation.
How long in that case would Ireland, under the rule of
her own people, allow America to drain away her wealth and
prosperity? The foreign competition, against which agriculturists
have to contend, will shortly be intensified by increased
importations of beef and mutton from Queensland and other parts
of Australia, and the struggle in England will become keener,
while Ireland will find it impossible to continue any of the small
exports of cattle and food she now sends us, except at still more
unprofitable prices.
This letter is somewhat lengthy, but the abrupt and discourteous
nature of your communication has led me to write
more fully than I should otherwise have done.
Yours faithfully,
FREDERICK BLOOD.
P. S.—As this is solely a public matter, I shall send my letter
to the Press, and shall be glad to take the same course with any
reply you may favour me.