From the dawn of history, uncontrolled 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 Delaware.  Connecticut was oppressed by Rhode Island and New York....  It was a dangerous game, ruinous in itself, and, behind the Custom-House officers, men were beginning to furbish up the locks of their muskets....  At one time war between Vermont, New Hampshire, and New York seemed all but inevitable.”