Protection in England, hitched to a world-wide freeze-out business
campaign against Germany, would doubtless divert a whole new
international discount business to New York. German exporters under
these circumstances might refuse payments from their other customers on
London, demanding bills on New York instead. To hold this business,
however, we should need direct banking and cable connections with all
the grand divisions of trade, adequate sea-carrying power, dollar
credits, and a government friendly to business.

Then, there is the middle English ground which demands a "tariff for
revenue only," and subsidy--not protection--for the new industries.

Combating all this is the dyed-in-the-bone free trader, who points to
the fact that free trade made England the richest of the Allies and gave
her control of the sea. "How can a nation that is one huge seaport, and
which lives by foreign trade, ever be a protectionist?" he asks.

If he has his way we shall have to struggle harder for our share of
universal business. More than this, it will block what is likely to be
one of Germany's schemes for rehabilitation. Here is the possible
procedure:

Germany's financial position after the war will be badly strained. She
can be saved only by an effective export policy. To do this she must
seek all possible neutral markets; and to get them quickly she will
offer broad--even extravagant--reciprocity programmes. They may conflict
with the proposed Franco-British programmes of protection and embargo
against neutral trade interests.

But if the Franco-British programme leaves the allied markets for goods