and to which appeals are ever confidently made. These opinions are
erroneous, and lead to false conclusions, and should be first considered
in every discussion of this question.

The first is, that the balance of trade is in our favor when our
exportations exceed our importations. Upon this theory it is argued that
it cannot be unwise to put restrictions upon importations, for they say
that at one and the same time you give protection to our industries and
keep the balance of trade in our favor. But the slightest investigation
will show that this proposition cannot be maintained. A single
illustration, often repeated, but never old in this discussion, will
demonstrate it. Let a ship set sail from Portland, Maine, with a cargo
of staves registered at the port of departure as worth $5,000. They
are carried to the West India Islands, where staves are in demand, and
exchanged for sugar or molasses. The ship returns, and after duty paid
the owner sells his sugar and molasses at a profit of $5,000. Here more
has been imported than exported. Upon this transaction the protectionist
would say that the balance of trade was against us $5,000; the free
trader says that the sum represents the profit to the shipper upon his
traffic, and the true balance in our favor.

Suppose that after it has set sail the vessel with its cargo had been
lost. In such case five thousand dollars' worth of goods would have been
exported, with no importation against it. The exportation has exceeded
the importation that sum. Is not the balance of trade, according to
the protection theory, to that amount in our favor? Then let the
protectionist turn pirate and scuttle and sink all the vessels laden
with our exports, and soon the balance of trade in our favor will be
large enough to satisfy even most advocates of the American protective
system. The true theory is that in commerce the overplus of the