“The Law,” “The State,” and Other Political Writings, 1843–1850. Bastiat Frédéric

protectionist authority to see an opportunity to acquire an industry for Paris in this plan and to increase its own importance.

      Finally, and unfortunately, it would not be impossible for the good people of Paris to see in all this only the extended views of those enjoying protection and the protectionist authority and to forget that, in the final instance, it is on them that the costs and contingencies of protectionism always fall.

      Who would wish to believe that the petitioners from Bordeaux, Lyons, and Le Havre, following the clamor of generous and liberal doctrines, would achieve by common accord a similar result and a totally identical system organized on a grand scale?

      “It is mainly in this second category (the one that includes materials that have not yet undergone any human transformation),” the petitioners from Bordeaux say, “that the mainstay of our merchant navy is to be found. . . . In principle, a wise economy would require that this category, as well as the first, not be liable to duty. The third might have duties levied and the fourth we consider to be the most appropriate to the levying of duties.”

      “Whereas,” say the petitioners from Le Havre, “it is essential to reduce raw materials immediately to the lowest rate of duty, so that industry can in turn put to work the naval forces that supply it with its initial and essential means of work. . . .”

      The manufacturers could not be more polite to shipowners. For this reason, the petition from Lyons requests the free introduction of raw materials to prove, it is said, “that the interests of manufacturing towns are not always in opposition to those of coastal ones.”

      Do we not seem to hear the Parisian hauler, whom I mentioned before, formulating his request thus: “Whereas wine is the principal element I transport, in principle it should not be liable to duty; as for eau-de-vie, this can

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      have duty levied on it. Whereas it is essential to reduce wine immediately to the lowest rate of duty so that the distiller can use my vehicles, which supply him with the initial and essential element of his work . . .” and to hear the distiller requesting the free import of wine to Paris and the exclusion of eau-de-vie, “to show that the interests of distillers are not always in opposition to those of haulers.”

      In sum, what would be the results of the system being proposed? They are these:

      It is at the price resulting from competition that we, the farmers, sell our primary products to manufacturers. It is at the price resulting from monopoly that we buy it back from them.

      If we work in circumstances that are less favorable than those of foreigners, so much the worse for us. In the name of freedom we are condemned.

      But if manufacturers are less skillful than foreigners, so much the worse for us. In the name of privilege we are condemned once more.

      If people learn to refine sugar in India or weave cotton in the United States, it is the raw sugar and cotton in the form of fiber that will be transported in order to use our naval forces and we, the consumers, will pay for the pointless transportation of the residues.

      Let us hope that, for the same reason and in order to supply lumberjacks with the initial and essential element of their work, we will bring in firs from Russia with their branches and bark. Let us hope that gold from Mexico will be imported in mineral form. Let us hope that, in order to have leather from Buenos Aires, herds of cattle will be transported.

      It will never come to that, people will say. And yet it would be rational. But this so-called rationality borders on absurdity.

      Many people, I am convinced, have adopted the doctrines of the protectionist regime in good faith (and certainly what is happening is scarcely likely to change their minds). This does not surprise me in the least; what does surprise me is that, when doctrines have been adopted with regard to one point, they are not adopted with regard to everything, since error also has its own logic. As for me, in spite of all my efforts, I have not been able to find a single objection that can be made to the regime of absolute exclusion that cannot be applied equally to the practical system of the petitioners.

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2 The Tax Authorities and Wine¹

      [vol. 1, p. 243. “Le Fisc et la vigne.” January 1841. n.p.]

      The production and sale of wines and spirits must of necessity be affected by the treaties and laws on finance that are currently the subject of deliberations in the chambers.

      We will endeavor to set out:

      1 The new obstacles that the draft law dated 30 December 1840 is threatening to impose on the wine-producing industry;

      2 Those obstacles implicit in the formal rationale that accompanies this draft ;

      3 The results to be expected from the treaty signed with Holland;

      4 The means by which the wine-producing industry might succeed in freeing itself.

      §1. The legislation on wines and spirits is a clear departure from the principle of equality of duties.

      At the same time it places all the classes of citizen whose industry it regulates in a separate, heavily taxed category, it creates among these very classes

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      inequalities of a second order: all are placed outside common law; each is held at varying degrees of distance.

      It appears that the minister of finance has taken not the slightest notice of the radical inequality we have just pointed out, but on the other hand he has shown himself to be extremely shocked by the secondary inequalities created by the law: he considers as privileged the classes that have not yet suffered from all of the rigors it imposes on other classes. He is devoted to removing these nice differences not by relaxing them but by making them worse.

      However, in pursuit of equality thus understood, the minister remains faithful to the traditions of the creator of the institution. It is said that Bonaparte originally established tariffs that were so moderate that the receipts did not cover the costs of collection. His minister of finance drew to his attention the fact that the law annoyed the nation without providing the treasury with funds. “You are an idiot, M. Maret,” replied Napoléon. “Since the nation is complaining about a few impositions, what would it have done if I had added heavy taxes to them? Let us first accustom them to the exercise; later we can adjust the tariff.” M. Maret realized that the great captain was no less an able financier.

      The lesson has not been lost, and we will have the opportunity of seeing that the disciples are preparing the reign of equality with a prudence worthy of the master.

      The principles on which the legislation on wines and spirits is based are clearly and energetically expressed in three articles flowing from the law dated 28 April 1816:

      Art. 1. Each time wine, cider, etc., is taken away or put somewhere else, a circulation duty will be paid. . . .

      Art. 20. In towns and villages with a total population of two thousand people and more² . . . the treasury will levy an entry duty . . . , etc. . . .

      Art. 47. When the wine, cider, etc., is sold retail, a duty of 15 percent of the said sales price will be levied. . . .

      In this way, each movement of wine, each entry, and each retail sale lead to the payment of a duty.

      Side by side with these rigorous and, one might say, strange principles, the law establishes a few exceptions.

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      With regard to circulation duty:

      Art.