of the public lands or of mining rights, except with the approval of the President of the United States.

The present Philippine Commission is abolished, and in its place a Senate created by popular vote; the Governor General retained with limited power. Tre real veto power is lodged in the President of the United States.

CHAPTER III

THE TARIFF

In national life these things-Wealth, Power, Pleasure and Interest-as customarily defined, arise from a variously employed population, from the activity of the people in all sorts of ways that produce a living, and from the average success of these employments, the very general pecuniary profit flowing from their pursuit. It is evident that to secure such a general distribution of industrial employments, to develop and multiply all kinds of imaginable occupation, requires three things—natural resources, people and a fair profit in business, of all the sorts known and followed. A small district with nothing but mining land in it cannot hope to make itself a national life of vast extent and profuse variety. A region of shepherds and wheat fields cannot either. The land must be seaboard and mountain, plain and valley, stream-land and lake-land; it must yield the ores, it must conceal the coal in its rocky laps and the wealth of the yellow grain in its fertile prairies. A land sparsely inhabited, and therefore undeveloped, has no national life of the kind we allude to; a population must enter and diverge through it along the lines of its own natural capabilities. It-the land-must be delved and sown, built upon and thrown into the eventual forms of all things eatable, or wearable, or desirable in life. It may be true that happiness and usefulness can dwell in countries so placed and so occupied as to present a, so to

speak, unilateral development, a one-sided, restricted and conservative economy. But they can have no broad influential national life, and in them the opportunities of men will be limited, their wits dulled by routine and their tempers tamed with an average comfort and a peaceful mediocrity.

And money must be made. It must enter munificently into the business relations of men, dropping in fertilizing showers down through all the grades of society and spreading upon its lowest planes into a network of rills and conduits, until the pleasurable and healthy influence of its happiness-making and health-gaining riches stirs the mass. of men and brings them into activity of life and activity of mind. These things, then-People, Natural Resources and a Fair Profit-form the factors, whose simultaneous existence make a national life of Wealth, Power, Pleasure and Interest.

In the review of the history of civilized nations in their industrial growth we can conveniently divide it into two parts-that preceding the enormous development of modern machinery and that embracing it. Manufacture, as literally interpreted, "the making by hand," was literally true a little over a century ago, and it is only since Arkwright's invention of the Spinning Jenny that manufacture by an etymological inversion has come to mean "the making by machinery"; and it is since the rise of the vast manufacturing interests of the modern world that we find national strength and wealth centering about national manufacture. If the manufacturing power of a country is strong, and especially if that manufacturing power can be fed with raw material taken from its own domain, the growth in wealth of such a country is an unmistakable consequence. It possesses the generative power for making

wealth, for these vast instrumentalities for making the goods and commodities which people use or enjoy are wealth, and the goods and commodities so produced are wealth also. Thus the effective change of its natural wealth into manufactured articles, the dispersion of people over its area and the gathering of capital into its business will bring to a nation Wealth, Power, Pleasure and Interest.

A country, then, must endeavor to attract the unused capital of other lands and to fully invite the capital of its own people to enter the currents of trade. And so far as an exact inquiry into its own resources makes it appear reasonable that encouragement must embrace the widest range possible of industries, so that not only will the employment of capital be diversified and thus entail the most thoroughgoing development of its capabilities, but this varied use of capital will tend to mitigate the injurious effects of ruinous competition and also permit the easy exchange of capital from one pursuit to another when it may prove desirable. And the advantages of a diversification of industry are also helpful to workmen, for when, for some reason, the business of one branch of production becomes poor and a restriction in its activity ensues the labor discharged from employment has the highest possible chance of securing employment in some or all of the other numerous industries not so affected.

And of course this diversification of industries brings into play within a country that system of complex cooperation which obtains generally throughout the world, whereby one set of workmen produce something needed by another set, who in return exchange for it the surplus products of their own industry, while for both a third set and a fourth and a fifth furnish additional necessities and receive also in return the finished commodities of the first

and second; while, as barter is no longer resorted to as the medium of exchange between the different sections of the mercantile community, there is also created a place for a "multitude of carriers, merchants, factors and retailers," who effect the clearance of these reciprocal activities. And so, having induced capital in combination with labor to dig coal, build railroads, burn bricks, weave wool, spin cotton, smelt iron, make glass, paper, steel, foods and to enter in a thousand ways the animated and complex system of industrial processes, and having thus put into operation a wealth-producing engine of enormous facility and great power and brought its natural resources into phases of increasing usefulness, it then, as always, concerns the best interest of a nation, which desires to be wealthy, powerful, happy and diverted to see that the distribution of wealth be as fairly proportioned as possible to the significance and extent of the labor of each individual engaged in making it. To this end it must endeavor to make the margin of profit of the capitalist consistent with the risks of business, as low as possible, and the wages of the laborer, consistent with a proper use of all the labor offered to it, as high as possible. The margin of profit of the capitalist is reduced by competition, which he must be exposed to in proportion as the profits of his style of business are known to be large, and the wages of the workman are reduced also by competition in proportion as it is a matter of common knowledge amongst laborers that his wages are high. Combination among capitalists may avert-and SHOULD-the strain, waste and reduction from competition and association among workmen may do the same for them.

But what in the principle of protection brings to view any basis of utility as a justification for taxing consumers for an involuntary support of implanted industries? Is