The protective principle is widely applied in every important existing tariff of customs outside of England, Holland, Norway, Belgium, Switzerland, and Denmark. This policy is clearly the outcome of national selfishness. The attempt to direct industry into certain lines by artificial means cannot find support in any system of political economy that regards the largest possible world's product as the proper aim.¹

The object is rather the greatest possible diversity of home products. In so far as this purpose is attained, it is by the process of shutting out competition and allowing the home producer to collect from home consumers a certain amount of support, greater or less, according to the supposed needs of the producer in question. In so far, then, the actual protection afforded is an item of public expenditure. Revenues collected by means of higher prices authorised by law are spent in developing the industry protected. It is in every respect the same as if a subsidy were paid to the manufacturer or other producer, except that the money goes directly to him without first passing through the treasury.²