o prevent and discourage trade and to raise the prices of the goods
imported. Any change in tariff duties, therefore, at once alters
the previously existing adjustment of profits and of industries in a
country.

The first effect of the tariff is the same as that of any new factor
in enterpriser's cost; the same, for example, as that of a new
domestic tax on an article or as that of a rise of freight rates--the
domestic price of the taxed article tends to rise. Other results then
follow. If the article cannot, even at the higher price, be produced
within the country (as in the cases of oranges, spices, and coffee
in England, Norway, and Sweden), its consumption is reduced. The
lessening of demand may, however, depress somewhat the price in
the producing country. But as such a tariff does not increase home
production of the taxed article, it is therefore for revenue, not for
protection.

But if the article can be profitably produced in the importing
country at the new price, "home industries" will start. Where the
transportation charges are low, as on the coasts and on the main lines
of railways, some imported goods may be bought, while farther inland
where transportation charges are higher home production of some or all
grades of such goods may take place. If the whole demand at home is
supplied and all imports stop, therewith cease all revenues to
the government from that source. A completely protective tariff is
completely prohibitive.

Experience abundantly shows that, with a few exceptions, due to
climate and natural resources, it is impossible to put into effect the
most moderate schedule of duties without the increase in price at once
causing some men to shift their occupations, and to begin producing
articles of the kinds that have risen in price. At once appears a
group of "protected industries," the owners of which are dependent for
the safety and profits of their investments, and the workmen in which
are dependent for the security of their present jobs (possibly for
the chance to continue the pursuit of highly skilled trades) on the
continuance, if not the increase, of the existing tariff rates. A
tariff may be adopted mainly from stress of financial need (as in our
own history in 1789 or in 1861), but its modification or repeal cannot
be decided by fiscal considerations. The "incidental protection" it
affords has created a wealthy and influential group of employers and a
large body of employees who are irr