controlled commercialism has been one of the
principal causes of misgovernment, and more especially of the
misgovernment of subject races. The early history of the Spaniards in
South and Central America, as well as the more recent history of other
States, testify to the truth of this generalisation. Similarly,
Trade--that is to say exclusive trade--far from tending to promote
peace, has not infrequently been accompanied by aggression, and has
rather tended to promote war. Tariff wars, which are the natural outcome
of the protective system, have been of frequent occurrence, and,
although I am not at all prepared to admit that under no circumstances
is a policy of retaliation justifiable, it is certain that that policy,
carried to excess, has at times endangered European peace. There is
ample proof that the Tariff war between Russia and Germany in 1893, "was
regarded by both responsible parties as likely to lead to a state of
things dangerous to the peace of Europe."[65] Professor Dietzel, in his
very remarkable and exhaustive work on _Retaliatory Duties_, shows very
clearly that the example of Tariff wars is highly contagious. Speaking
of the events which occurred in 1902 and subsequent years, he says:
"Germany set the bad example.... Russia, Austria-Hungary, Roumania,
Switzerland, Portugal, Holland, Servia, followed suit.... An
international arming epidemic broke out. Everywhere, indeed, it was
said: We are not at all desirous of a Tariff war. We are acting only on
the maxim so often proclaimed among us, _Si vis pacem, para bellum_."

Can it be doubted that there is a distinct connection between these
Tariff wars and the huge armaments which are now maintained by every
European state? The connection is, in fact, very close. Tariff wars
engender the belief that wars carried on by shot and shell may not
improbably follow. They thus encourage, and even necessitate, the costly
preparations for war which weigh so heavily, not only on the
industries, but also on the moral and intellectual progress of the
world.

Mr. Oliver, in his interesting biography of Alexander Hamilton, gives a
very remarkable instance of the menace to peace arising, even amongst a
wholly homogeneous community, from the creation of hostile tariffs. The
first step which the thirteen States of America took after they had
acquired their independence was "to indulge themselves in the costly
luxury of an internecine tariff war.... Pennsylvania attacked Delaw