Page:The Bank of England and the State, 1905.djvu/71

 they impose; and the same tendency prevails quite as markedly and perhaps even more so in the United States. Some months ago I referred to a conversation I had in 1901 with the late President McKinley, in the course of which he expressed his opinion that his own tariff had done its work, and that gradually but inevitably the American tariff would be reduced. I further stated that this was an opinion which was gaining ground more and more amongst the American people. From the way in which a great part of the American Press noticed my remarks. and challenged them, I am led to conclude that there was more ground for them than they desired to admit, and I have since had ample confirmation of the prevalence of this movement from Americans in all stations of life. In the face of these possibilities, of the tendency and desire of protectionist countries to remove obstacles in the way of trade which they know hinder them, is it wise for us, unless absolute proof were given of the necessity for doing so, to reverse a policy, during the continuance of which we have admittedly been prosperous! An American of large business experience summed up the situation in these words: "You are going to hoist the white flag just as relief is in sight."

I am not one of those who maintain that all is for the best, that our manufacturers have done as well as they should have done, that our exports are as expansive as they should be, and as they might be; but unless absolute proof to the contrary were given to me, I cannot see that the remedies which are suggested can bring about the desired result. Is it not our business methods that have to be adapted to modern conditions? When Germany commenced to expand, and to carefully nurse her industries, the first thing she did was to adopt the gold standard, to create the Imperial Bank, and put it on a basis which enabled it to powerfully assist in the commercial