agricultural
products was stiffly applied against Austria for many years, to compel
her to grant more favourable terms to German manufactured goods. For
eleven years Austria-Hungary maintained their protective barriers; but
in 1891 German persistence was rewarded in the form of a treaty by which
the Dual Monarchy let in German goods on easier terms provided that the
corn duties of the northern Power were relaxed. The fiscal strife with
Russia was keener and longer, but had the same result (1894). Of a
friendlier kind were the negotiations with Italy, Belgium, and
Switzerland, which led to treaties with those States in 1891. It is
needless to say that in each of these cases the lowering of the corn
duties was sharply resisted by the German agrarians. We may here add
that the Anglo-German commercial treaty which expired in 1903 has been
extended for two years; and that Germany's other commercial treaties
were at the same time continued.

It is hazardous at present to venture on any definite judgment as to the
measure of success attained by the German protectionist policy.
Protectionists always point to the prosperity of Germany as the crowning
proof of its efficacy. In one respect they are, perhaps, fully justified
in so doing. The persistent pressure which Germany brought to bear on
the even more protectionist systems of Russia and Austria undoubtedly
induced those Powers to grant easier terms to German goods than they
would have done had Germany lost her bargaining power by persisting in
her former Free Trade tendencies. Her success in this matter is the best
instance in recent economic history of the desirability of holding back
something in reserve so as to be able to bargain effectively with a
Power that keeps up hostile tariffs. In this jealously competitive age
the State that has nothing more to offer is as badly off in economic
negotiations as one that, in affairs of general policy, has no armaments
wherewith to face a well-equipped foe. This consideration is of course
scouted as heretical by orthodox economists; but it counts for much in
the workaday world, where tariff wars and commercial treaty bargainings
unfortunately still distract the energies of mankind.

On the other hand, it would be risky to point to the internal prosperity
of Germany and the vast growth of her exports as proofs of the soundness
of protectionist theories. The marvellous growth of that prosperity is
very largely due to the natural richn