concurrently with the transition from the old capitalism in which free competition prevailed, to the new capitalism in which financial capital holds sway.
Let us begin with the so-called tariff policy. In the international struggle, the bourgeois governmental authorities, each aiming at the protection of its own capitalists, have long since adopted the use of customs tariffs as a means of struggle. When, for example, the Russian textile manufacturers were afraid that their British or German competitors would introduce British or German textiles into Russia and would cut prices, the Russian government was accommodating enough to impose an import duty upon British and German textiles. Of course this hindered the import of foreign products into Russia. Manufacturers usually declare that tariffs are necessary for the encouragement of home industry. If, however, we study the tariff policies of the various countries, we can see that the real aim was very different. During the last few decades, the countries in which the capitalists have raised the greatest clamour for high import tariffs, the countries in which such tariffs have been imposed, are the greatest and strongest countries in the world. The United States has led in this movement. Could foreign competition possibly injure these countries? “What are you making such a row about, John? Who is hurting you? You are the aggressor!”
What is the real meaning of all this? Let us suppose that in a certain country the textile industry has been monopolised by syndicates or trusts. What happens if an import duty is imposed? The syndicated capitalists kill two birds with one stone. In the first place they free themselves from foreign competition. Secondly, to the buyers of their own land, they are able to raise prices by an amount nearly equal to that of the tariff. Suppose the import duty on textiles to be two shillings per yard. In that case the textile magnates need have no hesitation in adding two shillings, or at least 1s. 9d., per yard to the price of their