Econlib

The Library

Other Sites

Front Page arrow Titles (by Subject) arrow APPENDICES APPENDIX A. - The National System of Political Economy

Return to Title Page for The National System of Political Economy

Search this Title:

Also in the Library:

Subject Area: Economics
Topic: General Treatises on Economics

APPENDICES APPENDIX A. - Friedrich List, The National System of Political Economy [1841]

Edition used:

The National System of Political Economy by Friedrich List, trans. Sampson S. Lloyd, with an Introduction by J. Shield Nicholson (London: Longmans, Green and Co., 1909).

About Liberty Fund:

Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.


APPENDICES
APPENDIX A.

LIST'S allegation as to this effect of the pecuniary subsidies granted by England to her allies on the Continent would appear to have some foundation in fact: any capital transferred by one country to another (other than by a mere transfer of existing securities between wealthy States) must in the long run be effected chiefly in commodities. It is probable that the large loans made by English capitalists to foreign States (notably from 1850 to 1870) resulted in temporary extra demand for British products, which helped to cause the increase of our prosperity 'by leaps and bounds.' So far they may have operated as 'bounties' to British producers, in the manner in which List maintains that the subsidies did. But the subsidies being absolute gifts for services in war, and the subsequent loans to repudiating or bankrupt States being practically (although involuntary) gifts, produced no interest return in future years. The English nation has paid heavily (in the increase to the national debt) for any temporary benefit afforded to English manufacturers by the 'bounties' of which List complains. And English holders of foreign State bonds have paid no less heavily for the temporary 'leaps and bounds' by which British manufacturing industry may have advanced in more recent times, owing to the loans.—TRANSLATOR.