countries. Here, at least, the colonies would have some quid pro quo, a guaranteed monopoly of the imperial market for their exports, in compensation for their loss of customs revenue from admitting imperial imports free, or at a lower rate of duties. Assuming that the colonies would enter such an arrangement, Great Britain would have to pay a heavy price for the political and military support which such a commercial policy was designed to purchase. Apart from the immediate dislocation of her industries, which would follow this partial abandonment of Free Trade on her part, and which would be more serious than a carefully imposed tariff applied equally to all imports, it would tax all classes of consumers and producers in this country by raising the prices of ordinary necessaries and conveniences of life, and of materials imported from abroad to be employed in home industry. Grain and flour, cattle and meat, wool, timber, and iron would form the chief commodities which, in the supposed interests of our colonies, would be taxed first. Unless it did raise these prices it could have no effect in enabling colonial producers to displace foreign producers: the tariff, to be operative at all, must remove all profit from some portion of foreign goods previously imported, and, by preventing such goods from entering our markets in the future, reduce the total supply: this reduction of supply acts of necessity in raising the price for the whole market. This well-recognised automatic operation of the law of supply and demand makes it certain that English consumers would pay in enhanced prices a new tax, part of which would be handed over to colonists in payment for their new “loyalty,” part would go to the British exchequer, and part to defray expenses of collection.
Nor is this all, or perhaps the worst. By this very method of binding our colonies closer to us we take the surest way of increasing the resentment of those very nations whose political and military rivalry impels us to abandon Free Trade. The vast and increasing trade we have with France, Germany, Russia, and the United States is the most potent guarantee of peace which we possess. Reduce the volume and the value of our