ABSTRACT
When the President of the Board of Trade told the people that some two hundred foreign factories were established in Great Britain in 1932 under tariffs, and that over nine thousand workers had been employed, Protectionists made great play with the figures. The people who saw a new factory springing up in their midst felt that it was a good thing. At a time when there were so many cross currents, political and social, when ordinary citizens hardly knew what to believe. So conflicting were the opinions of recognized "authorities", that it was a relief to be presented with concrete evidence. More employment was the Protectionists' main justification of the establishment of these new foreign factories. The employment which a new tariff factory gave was merely a displacement of employment. The author has given most of the reasons why Free Traders have always discounted the "new factory" argument for tariffs, and why many Protectionists have now been driven to renounce it.
