Both the original version(in German) and its English translation of this part are available on the web as well.
Here a discussion on the protective duties, or the tariff imposed on imported products, is dealt with. A hypothesis that the protective tax will raise domestic products and decrease the proceeds of freeland farmers and will benefit landowners provided that the land tax will benefit farm laborers is given, and let's analyze it.
After telling that the tariff is less important for fiscal authorities than for landowners who want protected trades as they can sell their products so expensively, we see the fact that this protective duties is a cost just like freight for freeland farmers of the first and the second class, diminishing their proceeds. This will increase products' price and the reduction of farmlaborers' proceeds in accordance with freeland farmers' one. As a result, landowners can both sell their products more expensively and reduce their workers' salaries. Wages of industrial workers will decrease as well, so only landowners will receive benefits and the protective tariff, nominally paid by foreign farmers, is the burden for domestic industrial workers.
What will happen the next? If Germany imposes the protective duties Argentine and Canadian wheat becomes more expensive in Germany but keeps the same low price in the countries. So factories can gain more proceeds if they emigrate to Argentine or Canada thanks to the no need to pay for the freight as well. The increase of proceeds of freeland and industrial workers out of Germany will result in the rise of domestic ones as well, leading to the decrease of German landowners' income.
Gesell says that the only exception is freeland farmers of the third class, or those who pay rent for landowners to cultivate. They can sell their products more expensively thanks to the tariff, but industrial workers will demand their salary's rise as their life standard is lowered or go back to farming. So the inequality will be balanced, says Gesell. And the cheaper workforce increases the intensive farming's proceeds as well.
So the tariff is effective only temporarily.
(mig@lime.plala.or.jp)