ABSTRACT
John Maynard Keynes believed that the dangers to the Budget, the state of confidence and the maintenance of external equilibrium could be largely obviated by the imposition of a substantial revenue tariff. The revenue tariff suggested by Keynes would ease the pressure on the Budget by providing the funds required for the promotion of an expansionist program from outside sources. Keynes estimated that the revenue forthcoming from this measure would amount to between 50 and 75 million pounds. Keynes further observed that, if there were a necessary equality between imports and exports, there would be little sense in trying to raise home employment by reducing production costs in the import-competing industries. The Free Traders, however, were unwilling to concede to Keynes' reasoning. Keynes' conversion to protectionism, however expedient, evoked a great deal of criticism from his Free Trade friends. Keynes posed a number of others against the "imports must equal exports" thesis of the Free Traders.
