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THE NEW FEDERALIST August 3, 1990 Pages 6-7

American Almanac
The U.S.A. Must Return to
American System Economics!
The Heritage of Friedrich List
Virginia's North Anna nuclear
power station. There have een
no new or!ers "or U.S. nuclear
plants since #$%&' an! all those
or!ere! since #$%( have een
cancele!. )nset* +rie!rich ,ist'
the -erman.orn proponent o"
American System economics.
The section of this article dealing with Friedrich List's fight to counter the
economic policy disasters created by Adam Smith and the British in his own
time, was excerpted from an article titled "Friedrich List, atriot and !orld
"iti#en," by $l%e Fimmen, published in the &une '(() issue of the *erman+
language maga#ine, Fusion
I! t"e#e is one $an %"o is singu&a#&' #es(onsi)&e !o# t"e $ise#a)&e s"a(e o!
)ot" t"e *S an+ t"e ,#itis" e-ono$ies, it is A+a$ S$it", t"e go+!at"e# o!
!#ee ente#(#ise At S$it".s +oo#ste(, %e -an a&so &a' t"e (#esent su!!e#ings
o! t"e Po&is" (eo(&e, sin-e Po&an+.s go/e#n$ent is ta0ing t"e a+/i-e o!
S$it" +is-i(&e, Ha#/a#+ 1e-ono$ist1 2e!!#e' Sa-"s, on "o% to #un a $a#0et
e-ono$'
It is a g&o#ious i#on' t"at e/en t"e ,#itis", %"o a--ount S$it" one o! t"ei#
"e#oes, a#e )eing !o#-e+ to #et"in0 t"e assu$(tions o! "is e-ono$i- +o-t#ine,
as t"e' see t"ei# (osition in Eu#o(e sin0ing, %"i&e t"e 3e#$ans ta0e t"e &ea+
in -"a#ting a ne% -ou#se !o# %o#&+ +e/e&o($ent T"us, #e-ent&', in t"e
o#+ina#i&' /e#' &i)e#a& ,#itis" ne%s(a(e#, The *uardian, %e see -o&u$nist
Wi&& Hutton -#iti-i4e S$it", an+ gi/e (#aise instea+ to "is a#-"-ene$'
F#ie+#i-" List
5n t"e 17t" o! 2u&', t"e anni/e#sa#' o! S$it".s +eat", Hutton -#iti-i4es A+a$
S$it".s notion t"at t"e se-#et o! a "ea&t"', t"#i/ing e-ono$' is !o# e/e#'one
to )u' -"ea( an+ se&& +ea#6in t"e so--a&&e+ !#ee $a#0et(&a-e List, on t"e
ot"e# "an+, un+e#stoo+ 1t"e (o%e# o! producing %ea&t",1 7e$("asis a++e+8
an+ t"e 1$enta&,1 o# 1)#ain%o#01 -o$(onents o! t"e (#o-ess o! (#o+u-tion o!
%ea&t" Hutton notes $ou#n!u&&', t"at t"is is (#e-ise&' t"e (o&i-' %"i-"
gui+es 3e#$an e-ono$i- t"in0ing
It is use!u& to 9uote !#o$ Hutton.s -o&u$n, not on&' )e-ause %"at "e sa's
a)out t"e -ont#ast )et%een List an+ S$it" is a--u#ate an+ i$(o#tant, )ut
)e-ause t"e !a-t t"at t"e a#ti-&e a((ea#s in t"e ,#itis" (#ess is a "a#)inge#
t"at a se-tion o! t"e ,#itis" esta)&is"$ent is se#ious&' -onsi+e#ing a
-o##e-ti/e s"i!t in t"ei# o%n e-ono$i- (o&i-', a%a' !#o$ t"e +isast#ous
Sin-e t"e (#esent *S a+$inist#ation is "ea/i&' +e(en+ent u(on t"e ,#itis"
!o# its (o&i-' initiati/es, su-" a s"i!t in ,#itain -ou&+ "a/e i$(o#tant -onse-
9uen-es in t"e *nite+ States as %e&&
Hutton -o$$ents u(on S$it".s !ealth of ,ations an+ ot"e# e-ono$i-
%#itings:
;a#0ets a#e insu!!i-ient gua#anto#s o! (#os(e#it', in+ust#ia& st#engt",
o# e/en (o&iti-a& !#ee+o$, e/en i! t"e' a#e essentia& (#e-on+itions !o#
t"e$< an+ t"e %o#&+ %ou&+ )e %ise to (a' attention to ;# S$it".s
o$issions as %e&& as to "is %i+e&' !ete+ su--esses
;an' #e/ie%e#s "a/e !o-use+ on S$it".s "a((' -"a#a-te#i4ation o!
t"e $a#0et as an in/isi)&e "an+, !e&i-itous&' an+ in/isi)&' gui+ing an+
integ#ating t"e se&!-inte#este+ a-tions o! &ots o! in+i/i+ua&s T"e' $a'
not 0no% it, )ut in t"ei# 9uest to )u' -"ea( an+ se&& +ea#, t"e' a#e
-o$)ining toget"e# to !o#$ an e-ono$i- unit' t"at is t"e g#eate#
so-ia& goo+< (#o!it, in t"is s-"e$e o! t"ings, is t"e !ue& in t"e s'ste$
Wit"out t"e +#i/e !o# se&!-)ette#$ent an+ se&!-inte#est t"at (#o!it
#e(#esents, t"e in/isi)&e "an+ -annot %o#0
Hutton t"en %#ites:
T"is is a&& %e&& an+ goo+, )ut so$e 3e#$an #e/ie%e#s, nota)&'
F#ie+#i-" List, "a/e +#a%n attention to t"e /e#' &i$ite+ notion o!
(#o!it t"at S$it" "as in $in+< an+ t"e $isgui+e+ t"eo#' o! in+ust#ia&-
i4ation t"at is asso-iate+ %it" it
=a(ita&, sa's List, is a $u-" $o#e -o$(&e> i+ea t"an S$it".s -on-e(t
o! a--u$u&ate+ (#o!its t"#oug" )u'ing an+ se&&ing %e&&< "e "as ta0en
t"e %o#+ to $ean, sa's List a--using&', t"e sense in %"i-" it is
ne-essa#i&' ta0en )' #entie#s an+ $e#-"ants in t"ei# )oo00ee(ing an+
)a&an-e s"eets, na$e&' as t"e g#an+ tota& o! t"ei# /a&ues o! e>-"ange
,ut -a(ita& e$)o+ies $enta& as %e&& as $ate#ia& att#i)utes< an+ to
assu$e t"at -a(ita& is so$et"ing t"at is a-9ui#e+ t"#oug" e>-"ange is
to igno#e t"e !un+a$enta& an+ 9ua&itati/e +i!!e#en-e o! $anu!a-tu#ing
!#o$ ot"e# !o#$s o! a-ti/it'
1T"e (o%e# o! (#o+u-ing %ea&t" is in!inite&' $o#e i$(o#tant t"an
%ea&t" itse&!,1 %#ote List 1It ensu#es not on&' t"e (ossession o! an+
in-#ease o! %"at "as )een gaine+, )ut a&so t"e #e(&a-e$ent o! %"at
"as )een &ost1
An+ to (#o+u-e %ea&t", a#gue+ List, is as $u-" a so-ia& an+ s-ienti!i-
issue as one o! !#ee $a#0ets =iting ?S$it".s@ e>a$(&e o! t"e (in !a--
to#', t"e (oint is &ess t"at t"e#e %as a +i/ision o! &a)o#< $o#e t"at
t"e#e is at t"e sa$e ti$e 1a -on!e+e#ation o# union o! /a#ious ene#gies,
inte&&igen-e an+ (o%e#s on )e"a&! o! a -o$$on o(e#ation1
A su--ess!u& (in !a-to#' nee+s t#aine+ %o#0e#s, -ana&s an+ #ai&%a's to
s"i( t"e #a% $ate#ia&s an+ !inis"e+ (#o+u-ts6an+ &ast )ut not &east,
t"e )#ain%o#0 )e"in+ t"e -&e/e# $a-"ines t"at $a0es t"e (ins None
is natu#a&&' en+o%e+ o# -#eate+ )' 1e>-"ange,1 sa's List< t"e' "a/e
to )e in/ente+ an+ nu#tu#e+ )' a &a#ge# so-ia& agen-'6t"e state
Hutton -on-&u+es:
T"e ,#itis" state "a+ )een +ete#$ine+&' )e"in+ ,#itain.s in+ust#ia&-
i4ation, "e a#gue+6sti$u&ating $anu!a-tu#e, !o# e>a$(&e, at e/e#'
o((o#tunit'6an+, "e u#ges, 3e#$an' s"ou&+ +o t"e sa$e An+ it +i+<
an+ it "as< an+ it is
+rom le"t to right* ,ist's collaorators' Secre.
tary o" State /enry 0lay1 2resi!ent 3ohn
4uincy A!ams' the Mar5uis !e ,a"ayette'
Revolutionary 6ar hero an! +rench repulican.
6hat ,aRouche Says
T"e !ate o! t"e !#ee nations o! t"e West $a' %e&& #est on t"e out-o$e o! t"e
!ig"t )et%een t"e e-ono$i- (o&i-ies #e(#esente+ )' F#ie+#i-" List an+ A+a$
S$it", a--o#+ing to L'n+on LaRou-"e, to+a' t"e %o#&+.s &ea+ing e-ono$ist
LaRou-"e "as +e/e&o(e+ "is t"in0ing )ase+ u(on t"e !un+a$enta& +is-o/e#-
ies o! si>teent"--entu#' s-ientist an+ ("i&oso("e# 3ott!#ie+ Lei)ni4 in t"e
s-ien-e o! ("'si-a& e-ono$' Ae' in t"is is t"e i$(o#tan-e o! t"e +e/e&o(-
$ent o! a+/an-e+ te-"no&og', as a $eans to su((o#t an e>(an+ing (o(u&a-
tion at a "ig"e# stan+a#+ o! &i/ing
Fo# LaRou-"e, an+ Lei)ni4 a&so, t"ese i$(#o/e$ents in t"e $ate#ia& -on+i-
tions o! &i!e o! $an0in+, a#e one e>a$(&e o! t"e -ontinuing -#eation o! t"e
&i/ing 3o+< )ut t"ei# t#ue i$(o#tan-e is t"at a -u&tu#e +ete#$ine+ to (#o/i+e
!o# !utu#e gene#ations in t"is %a', is -u&tu#a&&' o(ti$isti-, an+ it (&a-es a
"ig" (#e$iu$ on "e&(ing e/e#' in+i/i+ua& to +e/e&o( "is o# "e# -#eati/e
-a(a-ities, to t"e !u&&est
T"is %as a&so t"e t#a+ition to %"i-" t"e g#eat nineteent"--entu#' 3e#$an
e-ono$ist, F#ie+#i-" List su)s-#i)e+ In t"ose +a's it %as 0no%n as A$e#i-
-an S'ste$ e-ono$i-s, in ot"e# %o#+s, t"e e-ono$i-s o! ,enBa$in F#an0&in,
"is -&ose asso-iates ;at"e% =a#e' an+ "is son Hen#', o! A&e>an+e# Ha$i&-
ton, an+ &ate# Hen#' =&a' an+ A)#a"a$ Lin-o&n
*n!o#tunate&', es(e-ia&&' sin-e t"e +a's o! Te++' Roose/e&t, A$e#i-an
S'ste$ e-ono$i-s "as )een #e(&a-e+ )' t"e e-ono$i-s o! A+a$ S$it" as a
"ege$oni- !o#-e in (o&i-'-$a0ing, %it" t"e t%o e>-e(tions o! t"e (e#io+ o!
t"e %a# e-ono$' in t"e 19C0s, an+ P#esi+ent Aenne+'.s s"o#t-&i/e+ A(o&&o
s(a-e (#og#a$ 7T"e s(a-e (#og#a$ too0 A$e#i-ans to t"e $oon, )ut t"e
-o$(#e"ensi/e Aenne+' e-ono$i- (#og#a$, $eant to su((o#t a *S !#on-
tie# in s(a-e, %as #e+u-e+ to not"ing )' L'n+on 2o"nson an+ "is su--es-
so#s8
LaRou-"e, in a (ie-e to )e (u)&is"e+ in t"e 2u&' D7 issue o! $xecuti-e
.ntelligence /e-iew $aga4ine, -o$$ents u(on %"' ,#itain an+ t"e *SA
$ust $a0e a #a(i+ s"i!t in e-ono$i- (o&i-' no%, o# )e +est#o'e+ as (o%e#s
He situates "is (#e+i-tion in te#$s o! t"e "isto#' o! Eng&an+
T"e ,#itis" #ise to %o#&+ (o%e#, %#ites LaRou-"e,
%as a--o$(&is"e+ -"ie!&' )' $i&ita#' an+ #e&ate+ $eans T"e#e
%ou&+ "a/e )een no Eng&an+ to s(ea0 o!, an+ -e#tain&' no ,#itis"
e$(i#e, )ut !o# t"e ,#itis" go/e#n$ent.s e$("asis on $i&ita#' (o%e#,
es(e-ia&&' na/a& su(#e$a-' o# g#o%ing !o#-es o! na/a& su(#e$a-' an+
t"e use o! ,#itain at "o$e in its +e/e&o($ent o! its in!#ast#u-tu#e,
in+ust#ies, si4e an+ so !o#t", to su((o#t t"at na/a& (o%e# an+ t"e
asso-iate+ $a#iti$e (o%e# an+ its !un-tion, i$(e#ia& !un-tions
T"e "isto#' o! t"e +e/e&o($ent o! $o+e#n e-ono$' in Eu#o(e, No#t"
A$e#i-a, an+ e&se%"e#e, 7LaRou-"e -ontinues8 is t"e +e/e&o($ent o!
)asi- e-ono$i- in!#ast#u-tu#e
I! %e &oo0 at t"e "isto#' o! Eu#o(e an+ A$e#i-a, %e see t"e +e/e&o(-
$ent o! in!#ast#u-tu#e as a $aBo# -o$(onent o! t"e +e/e&o($ent o!
%ea&t" an+ -a(ita& in tota& an+ (e# -a(ita in ea-" o! t"e #es(e-ti/e
nations
No%, in t"e -ase o! Eng&an+ %e "a/e an e>-e(tion Eng&an+ (#os-
(e#e+ as ?a@ ,#itis" e$(i#e, as a (a#asite nation It (#os(e#e+ on t"e
)asis o! not on&' on %"at it (#o+u-e+ +o$esti-a&&', )ut o! %"at it sto&e
!#o$ ot"e# nations An+ %e see t"at (atte#n in t"e #ise o! -o&onia&is$
an+ i$(e#ia&is$ in t"e eig"teent" an+ nineteent" -entu#' ?I!@ %e &oo0
at %"at is going on "e#e, %e -o$e to a /e#' inte#esting (oint #es(e-t-
ing t"e $ost #e-ent (ost-19E3 +e/e&o($ents in (a#ti-u&a# in t"e
Weste#n a&&ian-e
LaRou-"e t"en goes on to +e/e&o( t"e +i!!e#en-e )et%een "is t#a+ition, t"e
2u+eo-="#istian t#a+ition o! Lei)ni4 an+ List, an+ t"e essentia&&' (agan
+o-t#ines o! A+a$ S$it", %"i-" a#e $o+e&&e+ u(on t"e e>a$(&e o! t"e
(agan Ro$an e$(i#e
He t"en #e!e#s to t"e s"i!t in (o&i-' )' t"e Reagan a+$inist#ation in 19E3,
%"en a su((ose+ So/iet +e!e-to#, 5&eg 3o#+ie/s0' -&ai$e+ t"at *S
+e/e&o($ent o! t"e St#ategi- De!ense Initiati/e %ou&+ )e /ie%e+ )' t"e
So/iets as a -ause !o# %a#, an+ Reagan a&&o%e+ t"e SDI to +e/o&/e !#o$
LaRou-"e.s o#igina& -on-e(tion o! a +e!ense s"ie&+ )ui&t on ne% ("'si-a&
(#in-i(&es an+ sti$u&ating t"e +e/e&o($ent o! !#ontie# te-"no&ogies
He %#ites:
No% %e -o$e to t"e i#on' T"e -"a#a-te#isti- o! t"e (e#io+ sin-e t"e
su)$ission o! t"e 3o#+ie/s0' F0-(age "oa>, Ang&o-So/iet "oa>, to
P#esi+ent Reagan in 19E3, "as )een a +#i!t to%a#+ gene#a& +isa#$a-
$ent o! t"e Ang&o an+ A$e#i-an an+ ot"e# Weste#n (o%e#s, t"e
Weste#n a&&ian-e
W"ene/e# i$(e#ia& Ro$e, !o# #easons o! t"e -o&&a(se o! its +o$esti-
(o%e#, its (o%e# at "o$e, its (#o+u-ti/e (o%e#, its e-ono$i- (o%e#,
see0s to -ut t"e $i&ita#' (o%e#, t"e $i&ita#' su(#e$a-' u(on %"i-" its
i$(e#ia& st#engt" +e(en+s, t"at is t"e en+ o! Ro$e
W"o %i&& se#/e Ro$e %"o +oes not !ea# itG An+ "o% -an Ro$e )e
!ea#e+ i! it a)an+ons t"e on&' $eans )' %"i-" its (o%e# %as $ain-
taine+G W"en (ea-e )#o0e out, t"e Ang&o-A$e#i-an su(#e$a-' in
t"is %o#&+ in t"e i$(e#ia& T"eo+o#e Roose/e&t.s ="u#-"i&&ian !o#$ %as
+oo$e+ to -o$e to an ea#&' en+
Aove right' a ruine! railroa! yar! in
the English city o" Newcastle' a ma7or
coal.mining center. Aove le"t' an
unemploye! 8ritish wor9er. ,e"t*
A!am Smith' the "ather o" "ree
enterprise economics' which has
turne! -reat 8ritain an! the Unite!
States into rule heaps.
T"e on&' )asis u(on %"i-" t"e -a&a$it' sei4ing t"e Eng&is"-s(ea0ing
nations $ig"t )e #e/e#se+ is eit"e# to #esu$e a (o&i-' o! $i&ita#'
su(#e$a-' %"i-" t"e *nite+ States an+ ,#itain (e#sona&&' &a-0 t"e
$eans to un+e#ta0e, )e-ause t"e' -o&&a(se+ t"ei# e-ono$ies an+
#uine+ t"e$, o# es-"e%ing t"at to go to t"e e-ono$i- (o&i-ies, anti-
,#itis" e-ono$i- (o&i-ies, anti-A+a$ S$it" e-ono$i- (o&i-ies
e>(#esse+ in 3e#$an' )' F#ie+#i-" List u(on %"i-" t"e 'oung
A$e#i-an !e+e#a& #e(u)&i- un+e# t"e &ea+e#s"i( o! Was"ington,
A&e>an+e# Ha$i&ton, an+ Lin-o&n a$ong ot"e#s -a$e to )e a g#eat
%o#&+ (o%e# %it", ne>t to 3e#$an' o! t"e nineteent" -entu#' an+
t%entiet" -entu#', t"e "ig"est #ate o! (#o+u-ti/it' on t"is (&anet
In ot"e# %o#+s, going to t"e A$e#i-an S'ste$ as I "a/e a+/o-ate+ in
o((osition to $' #i/a&s an+ a+/e#sa#ies in t"e &ea+e#s"i( o! t"e *nite+
States an+ ,#itain, in (a#ti-u&a#, is t"e on&' "o(e !o# t"e *nite+ States
an+ ,#itain to+a' an+ is t"e on&' (o&i-' %"i-" -ontinenta& Eu#o(e an+
t"e +e/e&o(ing nations -ou&+ #ig"t&' a+$i#e o# e/en en+u#e
6ho 6as +rie!rich ,ist:
F#ie+#i-" List %as )o#n in 3e#$an' in 17E9, in %"at %as t"en t"e !#ee -it'
o! Reut&ingen He %as )#oug"t u( in an en/i#on$ent t"at %as in+e&i)&'
sta$(e+ )' t"e A$e#i-an Re/o&ution, an+ )' t"e g#eat 3e#$an #enaissan-e,
&e+ )' F#ie+#i-" S-"i&&e# an+ t"e Hu$)o&+t )#ot"e#s, in s"o#t, )' 3e#$an
-&assi-is$
He %as t#aine+ in t"e WH#tte$)e#g -i/i& se#/i-e, %"e#e "e &ea#ne+ t"e
!un+a$enta&s o! Lei)ni4.s t"eo#ies o! (o&iti-a& e-ono$', an+ t"e %o#0s o! "is
s-"oo& o! e-ono$i- t"oug"t, so$eti$es -a&&e+ -a$e#a&is$
A--o#+ing to t"is t"eo#', t"e int#o+u-tion o! ne% in/entions an+ te-"no&o-
gies into t"e e-ono$' is (#i$a#', a&ong %it" t"e 9uestion o! "o% a state
s"ou&+ )e o#gani4e+ on t"e !oun+ation o! te-"no&ogi-a& (#og#ess
T"is t#a+ition %as a&so in-o#(o#ate+ )' 3e#$an (o&iti-a& &ea+e# F#ei"e## /o$
Stein an+ t"e F#en-" !oun+e#s o! t"e E-o&e Po&'te-"ni9ue su-" as La4a#e
=a#not, %"o$ List stu+ie+
As a -i/i& se#/ant, List (#o(ose+ a se#ies o! #e!o#$s to $a0e t"e e-ono$'
an+ a+$inist#ation $o#e e!!e-ti/e T"en, in 1E17, "e %as o!!e#e+ a (#o!es-
so#s"i( in (o&iti-a& s-ien-e, t"e !i#st e/e# in t"at su)Be-t, at Tu)ingen *ni-
/e#sit'
At t"at ti$e 3e#$an' %as o#gani4e+ as a se#ies o! in+e(en+ent (#in-i(a&i-
ties, an+ t"e#e!o#e, t"en as no%, uni!i-ation o! 3e#$an' %as an essentia& tas0
un+e#ta0en )' #e(u)&i-ans To a--o$(&is" t"is, List %o#0e+ to !o#$ a -us-
to$s union ?to e&i$inate to&&s an+ ta#i!!s )et%een t"e 3e#$an (#in-i(a&ities
6e+@ He %as t"e s(i#it )e"in+ t"e !oun+ing o! t"e 3e#$an ,usiness an+
=o$$e#-e *nion, on t"e %o#0 o! %"i-" t"e -#eation o! t"e 3e#$an =us-
to$s *nion %as essentia&&' )ase+
He &e+ t"e *nion.s +e&egation t"at o#gani4e+ at t"e 3e#$an (#in-e&' -ou#ts
!o# t"e +e!ense o! 3e#$an'.s 'oung in+ust#' T"at in+ust#' "a+ )een #uine+,
!o&&o%ing t"e &i!ting o! t"e -ontinenta& ta#i!! )a##ie# against Eng&an+ in 1E13,
an+ t"e Eng&is" +u$(ing o! -"ea( goo+s onto Eu#o(ean $a#0ets List.s
a-ti/it', o! -ou#se, +is(&ease+ t"e Aust#ian ="an-e&&o# ;ette#ni-", so $u-"
t"at, in 1E19, List %as !o#-e+ to &ea/e "is a-a+e$i- (osition
Po&iti-a& (e#se-ution against "i$ $ounte+ His atte$(ts to -a##' out e-o-
no$i- an+ -onstitutiona& #e!o#$s in t"e WH#tte$)e#g -"an-e&&e#', to %"i-"
"e "a+ )een -"osen as Reut&ingen #e(#esentati/e in 1E19, -a$e to a su++en
en+ %"en "e +#a!te+ an+ -i#-u&ate+ a (etition to Reut&ingen.s -iti4ens in
%"i-" "e s"a#(&' atta-0e+ t"e (#e/ai&ing +e(&o#a)&e state o! a!!ai#s He %as
-"a#ge+ %it" l0se ma1est2 )ut es-a(e+ to F#an-e an+ S%it4e#&an+, %"e#e "e
sta'e+ !o# t%o 'ea#s6a !ate t"at "e s"a#e+ %it" $an' ot"e# #e(u)&i-ans a!te#
t"e =ong#ess o! Iienna
5n t"e a+/i-e o! "is !#ien+s, List #etu#ne+ in 1EDC, to sit out a $an'-$ont"
a##est in t"e Ho"en As(e#g T"e !a-t t"at "e %as -on-e#ne+ +u#ing t"is ti$e
%it" (&ans !o# +e/e&o(ing a #ai& net%o#0 !o# WH#tte$)e#g testi!ies to "is
uns"a0a)&e o(ti$is$ to -ontinua&&' !o#$ ne% (&ans e/en un+e# t"e $ost
#e(u&si/e -i#-u$stan-es A!te# (e#sistent negotiations %it" o!!i-ia&s, ,a#on
/on =otta, t"e (u)&is"e# o! S-"i&&e#.s %o#0s, &i)e#ate+ List !#o$ (#ison
Ho%e/e#, List %as !o#-e+ to ag#ee to e$ig#ate
W"i&e in e>i&e in 1EDD, List "a+ -o$e to 0no% 3ene#a& La!a'ette, one o! t"e
&ea+ing $in+s o! t"e A$e#i-an Wa# o! In+e(en+en-e an+ t"e (e#sona& -on!i-
+ant o! 3eo#ge Was"ington an+ A&e>an+e# Ha$i&ton La!a'ette in/ite+ List
to a--o$(an' "i$ to A$e#i-a List a--e(te+ t"e in/itation, an+ &e!t Eu#o(e
!o# si> 'ea#s !#o$ t"e F#en-" (o#t o! Le Ha/#e %it" "is !a$i&' in 1EDC He
%as su((ose+ to stu+' t"e +e/e&o($ent o! t"e e-ono$' o! t"e ne% *nite+
States %it" "is o%n e'es, %"i-" %as to $a0e "i$ into t"e &ea+ing (#o(onent
o! t"e A$e#i-an S'ste$ o! Po&iti-a& E-ono$' in Eu#o(e a!te# "is #etu#n
,ist in America
At t"e en+ o! t"e eig"teent" -entu#' an+ t"e )eginning o! t"e nineteent", t"e
)att&e %as #aging )et%een ,#itis" inte#ests, an+ t"ose #e(u)&i-an net%o#0s
t"at insiste+ on t"e in+ust#ia& an+ s-ienti!i- +e/e&o($ent o! t"ei# o%n na-
tions T"e ,#itis" inten+e+ to #ea-" un&i$ite+ %o#&+ (o%e# an+ i$(e#ia&
&ooting un+e# t"e )anne# o! !#ee t#a+e T"ei# (o&i-' %as to +u$( ,#itis"-
$anu!a-tu#e+ in+ust#ia& goo+s onto t"e $a#0ets o! ot"e# nations at (#i-es
)e&o% t"e -ost o! (#o+u-tion, in o#+e# to )an0#u(t nati/e in+ust#', in -oun-
t#ies %"e#e t"e' %e#e intent u(on a-"ie/ing "ege$on'
T"is %as (#e-ise&' %"' t"e *nite+ States "a+ !oug"t !o# its in+e(en+en-e
In 3e#$an', t"e !ig"t against Na(o&eon "a+ "e&(e+ List.s -i#-&e, (a#ti-u&a#&'
#e!o#$e#s in P#ussia, to (us" t"#oug" #e(u)&i-an #e!o#$s, in o#+e# to +e!en+
against t"e F#en-" in/a+e#
T"e =ong#ess o! Iienna in 1E1F, "o%e/e#, +est#o'e+ a&& t"ese e!!o#ts 3#eat
,#itain !o#$e+ t"e Ho&' A&&ian-e %it" Aust#ia an+ Russia in o#+e# to -"o0e
o!! an' e!!o#t to #e(eat t"e A$e#i-an Re/o&ution in Eu#o(e T"e &ea+ing
t"in0e# o! t"e #e(u)&i-an e!!o#ts in Eu#o(e %as 3ene#a& La!a'ette, %"ose
=in-innatus So-iet'6a union o! &ea+ing *S an+ F#en-" o!!i-e#s !#o$ t"e
A$e#i-an Re/o&utiona#' Wa#6!un-tione+ as t"e -oo#+inating -ente#
)et%een Eu#o(e an+ t"e *nite+ States
In 1EDF, La!a'ette !a$i&ia#i4e+ List %it" t"e *S si+e o! t"is t#ansat&anti-
-ons(i#a-' List t#a/e&e+, a--o$(an'ing )' La!a'ette, !o# t"#ee $ont"s in
t"e easte#n (a#t o! t"e *nite+ States He $et t"e e-ono$ist ;at"e% =a#e',
%"o "a+ )een a (e#sona& !#ien+ o! ,enBa$in F#an0&in< t"e &ate# Se-#eta#' o!
State Hen#' =&a'< t"e t"en Se-#eta#' o! State an+ &ate# P#esi+ent 2o"n
Juin-' A+a$s< an+ T#easu#' Se-#eta#' Rus", to na$e on&' t"e $ost
i$(o#tant
List -a$e to t"e *nite+ States at a ti$e %"en t"e A$e#i-an S'ste$ "a+ Bust
#egaine+ t"e u((e# "an+ in e-ono$i- (o&i-' F#o$ 1E01-1D, ,#itis" an+
S%iss !inan-ia& inte#ests6(e#soni!ie+ in T#easu#' Se-#eta#' 3a&&atin an+
P#esi+ent ;a+ison6"a+ +est#o'e+ t"e *S e-ono$' 3a&&atin "a+ #uine+
t"e *S e-ono$' %it" "is !#ee t#a+e (o&i-' !a/o#ing o! ,#itis" $anu!a-tu#-
ing i$(o#ts, an+ t"en "a+ insiste+ t"at t"e +e!i-it "a+ to )e )#oug"t +o%n )'
1auste#it' (o&i-ies1 T"e *S !&eet !e&& /i-ti$ to t"is (o&i-'6$u-" to t"e
Bo' o! t"e ,#itis"
,ist "ought "or "i"teen years "or the elimination o" tari"" arriers etween the
-erman states' an! the creation o" a -erman 0ustoms Union ;<ollverein=.
The map elow shows the states which 7oine! in #&>&' #&(?' an! #&@?. The
cartoon aove' showing a merchant with a wagon.loa! o" goo!s oun! "or
mar9etAwhich "alls into three separately tari""e! BonesAri!icules the tari""
system e"ore the a!vent o" ,ist's <ollverein.
5n&' a!te# t"e +ete#$ine+ inte#/ention !#o$ su-" #e(u)&i-ans as Hen#' =&a'
an+ ;at"e% =a#e', %"o -a##ie+ out t"e se-on+ Wa# o! In+e(en+en-e against
Eng&an+ in 1E1D, %e#e t"e (#in-i(&es o! t"e *S e-ono$', %"i-" "a+ )een
!oun+e+ )' A&e>an+e# Ha$i&ton, su--ess!u&&' #eesta)&is"e+ Ha$i&ton.s
(#og#a$ -onsiste+ in (#o$oting t"e +e/e&o($ent o! in+ust#' an+ ag#i-u&tu#e
t"#oug" &o%-inte#est -#e+it an+ +e/e&o(ing t"e -ount#' %it" &a#ge-s-a&e
in!#ast#u-tu#e (#og#a$s
T"e ne%&' !oun+e+ Nationa& ,an0 o! t"e *nite+ States !u#nis"e+ t"ese
-#e+its< si$u&taneous&', (#ote-ti/e ta#i!!s 0e(t out un"ea&t"' !o#eign -o$-
(etition, (#i$a#i&' ,#itis", so t"at +o$esti- in+ust#' -ou&+ +e/e&o( T"e !i#st
*S P#esi+ent, 3eo#ge Was"ington, "a+ s'$)o&i-a&&' e$)o+ie+ t"is (o&i-'
on t"e +a' o! "is inaugu#ation )' +e$onst#ati/e&' %ea#ing a suit t"at "a+
)een se%n out o! *S -&ot"
In 1ED3, 2a$es ;on#oe %as P#esi+ent an+ 2o"n Juin-' A+a$s %as "is
Se-#eta#' o! State T"e se-on+ *S Nationa& ,an0 %as o(ene+ in 1ED3, an+
in t"e sa$e 'ea# =ong#ess o#+e#e+ an in-#ease o! t"e ta#i!!s (&a-e+ on
!o#eign goo+s T"e *S nation !oun+ itse&! again in an e-ono$i- u(s%ing
I$$e+iate&', List inte#/ene+ a-ti/e&' in t"e !o#tunes o! t"e -ount#' %"e#e "e
%as a guest< "e %as %o#0ing ("i&oso("i-a&&' an+ (#og#a$ati-a&&' on !a$i&-
ia# g#oun+ F#ee !#o$ -enso#s"i(, "e %o#0e+ !#o$ 1ED6 as t"e e+ito# in
-"ie! o! t"e in!&uentia& 3e#$an-&anguage %ee0&' ne%s(a(e#, t"e /eadinger
Adler3 He taug"t t"e (#e+o$inant&' 3e#$an +es-en+ants in Rea+ing, Penn-
s'&/ania a)out %o#&+ (o&iti-a& e/ents, %it" s(e-ia& #e!e#en-e to t"e (o&i-' o!
t"e (o%e#s o! t"e Ho&' A&&ian-e, %"i-" #e(#esente+ a se#ious t"#eat to t"e
'oung *nite+ States
In "is a#ti-&es, "e e>a$ine+ ,#itis" (o&i-' in Sout" A$e#i-a, %"e#e t"e'
%e#e t#'ing to gain a !oot"o&+ P#esi+ent ;on#oe "a+ Bust announ-e+ t"e
;on#oe Do-t#ine in 1ED3, %"i-" gua#antee+ (#ote-tion o! t"e so/e#eignt' o!
a&& t"e Sout" A$e#i-an nations against Eu#o(ean inte#/ention
List sai+, a$ong ot"e# t"ings, t"at t"e #e/o&ution in Po#tuga& an+ S(ain6
%it" t"e su)se9uent te##i)&e %a# )et%een S(ain an+ F#an-e6"a+ )een
ins(i#e+ )' Eng&an+, in o#+e# to %ea0en S(ain.s in!&uen-e in Sout" A$e#i-a
an+ to a&&o% Eng&an+ itse&! to gain a !oot"o&+ 1To+a', Eng&an+ is uniting
%it" #e/o&utionists, %it" &i)e#a& (#in-i(&es, %it" a&& t"ose %"o a#e +issatis-
!ie+, !i#st to te##i!' t"e 0ings an+, in -ase t"is s"ou&+ not su--ee+, to !o#-e
t"e$ to its %i&&1
In anot"e# a#ti-&e, "e (o&e$i-i4e+ against t"e Russian -4a#, +esignate+ as t"e
1Po&i-e$an o! Eu#o(e1 )' t"e Ho&' A&&ian-e He #e(o#te+ to "is #ea+e#s
a)out t"e -4a#.s -o#onation, an+ e>(&aine+ %"at a -#o%n is: 1A #oun+ t"ing
t"at 'ou -an (ut on 'ou# "ea+, )eneat" %it" a #i$ &i0e a -oin, )ut o! go&+
an+ Be%e&s, an+ a)o/e o(en an+ !u#nis"e+ %it" a&& so#ts o! a+o#n$ents
T"us, it gi/es (#ote-tion neit"e# against t"e #ain no# t"e sun an+ neit"e#
-oo&s no# %a#$s, an+ no one 0no%s %"at it.s goo+ !o#1
A++itiona&&', t"e Adler a#ti-&es #e(o#te+ a)out e/e#' i$agina)&e a+/an-e in
s-ien-e an+ te-"no&og' T"e -onst#u-tion (o&i-' t"at %as (#og#essing
#a(i+&' in t"e *nite+ States !as-inate+ List, an+ "e stu+ie+ e/e#'t"ing /e#'
-a#e!u&&' Late#, "e +esignate+ t"ese 'ea#s as "is ti$e o! a((#enti-es"i(
He#e "e -ou&+ stu+' "o% an e-ono$' -a$e into e>isten-e
He $isse+ 13e#$an so-iet' an+ &o/e o! &i!e,1 es(e-ia&&' 1%ine, (oet#', an+
$usi-,1 an+ so List, %it" "is o%n ente#(#ising s(i#it, un+e#too0 to sti$u&ate
t"e -u&ti/ation o! %ine in Penns'&/ania an+ en-ou#age+ su--ess!u& inn-
0ee(e#s to use t"e ne%&' (#o+u-e+ %ines in t"ei# (u)&i- "ouses In "is
o(inion, t"e -u&ti/ation o! %ine %as (a#ti-u&a#&' suite+ to st#engt"en t"e
$o#a&it' o! t"e A$e#i-an (o(u&ation Instea+ o! 1"a#+ &i9uo#,1 %"i-" on&'
+u&&e+ t"e $in+ an+ $a+e (eo(&e agg#essi/e, t"e 1enno)&ing e!!e-t o! %ine1
s"ou&+ sti$u&ate $in+s an+ ins(i#e (eo(&e to ne% a-tions
,ist Versus Smith
List.s %#itings "a/e "a+ an en+u#ing e!!e-t, (a#ti-u&a#&' in 3e#$an' List is
"ig"&' #e&e/ant to+a' T"e su)stan-e o! t"e -ont#o/e#s' t"at "e -a##ie+ on
%it" t"e t"en +e!en+e#s o! t"e 1!#ee $a#0et e-ono$'1 is as /a&i+ to+a' as it
%as a -entu#' ago
At t"at ti$e, ,#itis" t"eo#eti-ians su-" as A+a$ S$it"6an e$(&o'ee o! t"e
,#itis" East In+ia =o$(an'6!oug"t against 1inte#!e#en-e )' t"e state1 in
t"e e-ono$', an+ asse#te+ t"at t#ue %ea&t" -o$es on&' !#o$ t"e 1e>-"ange
o! /a&ues,1 t"e (ossession o! &an+ 71g#oun+ #ent18, o# t"e e>(&oitation o!
/a&ua)&e #a% $ate#ia&s T"ei# $ottoes %e#e, 1,u' -"ea( an+ se&& +ea#1 an+
1Laisse4-!ai#eK1
In o((osition to t"is ,#itis" S'ste$, %"i-" !oun+ e>(#ession in t"e )#uta&
&ooting (o&i-' o! t"e ,#itis" -o&onia& e$(i#e, List (ut !o#%a#+ t"e 1A$e#i-an
S'ste$ o! Po&iti-a& E-ono$'1: t"e -on-e(t o! t"e 1-u&ti/ation o! (#o+u-ti/e
!o#-es1
List.s -"a#a-te#i4ation o! t"e !inan-ia& an+ $e#-"ant e&ite o! t"ose +a's, %"o
%it" t"ei# giganti- s(e-u&ati/e )usinesses )#oug"t a)out t"e +o%n!a&& o!
enti#e nations, to+a' a--u#ate&' +es-#i)es t"e $enta&it' o! t"e Inte#nationa&
;oneta#' Fun+, t"e Wo#&+ ,an0, an+ -a#te&s su-" as D%a'ne An+#eas.s
A#-"e# Danie&s ;i+&an+ T"e' t"in0 t"at t"e' -an (#o!it !#o$ t"e -o&&a(se
o! t"e %o#&+ e-ono$', an+ atte$(t to (#e/ent an' 1+i#igisti-1 #e!o#$ o! t"ei#
)an0#u(t %o#&+ e-ono$' an+ !inan-ia& s'ste$ t"at %ou&+ t"#eaten t"e so-
-a&&e+ !#ee $a#0et e-ono$'
List #e$o/e+ t"e san-ti$onious "a&o !#o$ t"ese a(ost&es o! t"e !#ee $a#0et
e-ono$', %"o s-#ea$ i! t"ei# inte#ests a#e to )e &i$ite+ to )ene!it t"e
nationa& inte#est His +es-#i(tion o! t"ese usu#e#s, %"i-" %e no% 9uote, is
Bust as a(t no% as %"en "e %#ote it:
T"e $ost #e$a#0a)&e -"a#a-te#isti- o! t"is $e#-"ant is t"at "e6
t"e s%o#n ene$', t"e +ea+&' ene$' o! an' $ono(o&', an' (#i/i&ege,
an' #est#i-tion, an' nationa& (#ote-tion in !a/o# o! t"at %"i-" "e -a&&s
(#i/ate in+ust#'6t"at "e "i$se&! is t"e $ost 4ea&ous an+ intense
suito# !o# t"is (#i/i&ege, $ono(o&', #est#i-tion, an+ (#ote-ti/e $ea-
su#es i! t"e' "a#$oni4e %it" "is o%n (#i/ate inte#ests
He +es-#i)es t"e uns-#u(u&ousness o! t"e $e#-"ant as !o&&o%s:
I! "e -annot $a0e $one' o!! t"e (#os(e#it' o! a -ount#', "e s(e-u&ates
on its e-ono$i- (#o)&e$s Hunge#, %a#, t"e sa&e o! t"e ani$a& sto-0
ne-essa#' !o# ag#i-u&tu#e, an+ e/en t"e !e#ti&i4e#s, t"e sa&e o! t"e
$ate#ia& e9ui($ent o! -o&&a(se+ !a-to#' )usinesses, t"e e$ig#ation o!
#uine+ $anu!a-tu#e#s, %o#0e#s, an+ !a#$e#s, e/en t"e (#o/ision o! t"e
ene$' %it" $unitions6e/e#'t"ing )e-o$es !o# "i$ t"e o)Be-t o!
s(e-u&ation an+ (#o!it Wit" "is "a#+ &i9uo#, "e (oisons enti#e nations
an+ t"e no)&est #a-es, %it"out )e-o$ing ti#e+ o! -#'ing out again an+
o/e# again, 1Let us +o it, +o not inte#!e#e16 1Laisse# faire et laisse#
passer41
No one s"ou&+ sa' t"at t"is +es-#i(tion a((&ies on&' to t"e (ast -entu#'
To+a', nations a#e not (oisone+ )' 1"a#+ &i9uo#,1 )ut #at"e# %it" +#ugs6a
$a#0et t"at %it" its "un+#e+s o! )i&&ions o! +o&&a#s is &a#ge# t"an t"e
e-ono$' o! $an' nations T"e $ani(u&ation o! #a% $ate#ia& (#i-es "as
e!!e-ti/e&' #uine+ a nu$)e# o! nations in t"e T"i#+ Wo#&+, an+ &i0e%ise t"e
(o&i-' o! +e)t -o&&e-tion, %"i-" "as in-#easing&' %#e-0e+ t"e (#o+u-ti/e
)asis o! t"e nations a!!e-te+
List -ont#asts t"e (#o+u-ti/e ent#e(#eneu# to t"ese s(e-u&ato#s:
T"e $anu!a-tu#e#6u#ge+ !a# $o#e st#ong&' )' t"e natu#e o! "is
a-ti/it' to go to t"e !oun+ations o! t"ings6is !o#-e+ to e+u-ate "is
inte&&e-t an+ to stu+' natu#e He is t"e#e!o#e +i#e-t&' inte#este+ in t"e
(#og#ess in t"e s-ien-es, a#ts, an+ in/entions T"e $e#-"ant, "o%e/e#,
sti-0s %it" a#it"$eti- instea+, %it" +ou)&e-ent#' )oo00ee(ing, %it"
t"e -o$$o+it' an+ e>-"ange $a#0et, an+ t"us %it" t"ings t"at a#e
"a#+&' suite+ to e+u-ate t"e "ea#t an+ t"e $in+
Fa#$e#s an+ $anu!a-tu#e#s -an on&' (#o!it t"#oug" t"e -#eation o!
ne% /a&ues T"ei# (#o+u-tion is t"e#e!o#e $ost ne-essa#i&' a&%a's
use!u& !o# t"e uni/e#sa& Not so %it" t"e $e#-"ant Fo# "i$, it
is $e#e&' a $atte# o! (#o!it !#o$ t"e e>-"ange o! -o$$o+ities ?to+a',
%e -an a++ !inan-ia& s(e-u&ation, %"i-" a$ounts to a g#eat +ea& $o#e
in !a-t t"an t"e e>isting 9uantit' o! goo+s6EF@ I! t"e nation o#
$an0in+ su!!e#s a &oss o! (o%e# as t"e #esu&t o! t"is e>-"ange, t"at is
in+i!!e#ent to "i$ His $otto is, 1,u' %"e#e 'ou -an )u' -"ea(&'<
se&& %"e#e 'ou -an se&& +ea#&'1 I! a&& !a#$e#s %e#e to sa% +o%n o#
(u&& u( t"ei# !#uit t#ees in o#+e# to sen+ t"e$ a)#oa+, it %ou&+ not
)ot"e# t"e $e#-"ant (e#sona&&' o# as a )usiness$an to "e&( t"e$ +o it,
assu$ing t"at "e -ou&+ $a0e su!!i-ient (#o!it o!! t"e a!!ai# He %ou&+
$ost (#e!e# in t"is -ase, %e#e it on&' (ossi)&e, to se&& in e>(o#t t"e
!ie&+s t"e$se&/es o# at &east t"e ea#t" t"e' -o/e# I! a&& t"e e>isting
&an+ in-&u+ing t"e soi& on %"i-" "is o%n !eet stan+ %e#e s"i((e+
a)#oa+ in t"is %a', "e %ou&+ -&i$) into "is s"i( an+ "i$se&! go to
anot"e# -ount#'
List state+ t"at t"e #ea& %ea&t" o! nations -onsists in t"e 1inte&&e-tua& -a(ita&1
o! t"ei# (o(u&ations List -o$(a#e+ inte&&e-tua& %o#0 in so-iet' %it" t"at o!
t"e sou& in t"e )o+', %"i-" -onstant&' in-#eases t"e (o%e#s o! "u$an )eings
t"#oug" ne% in/entions In t"is -onne-tion, s-ienti!i- )#ea0t"#oug"s a#e o!
singu&a# i$(o#tan-e, sin-e t"e' e!!e-t te-"no&ogi-a& #e/o&utions an+ (#og#ess
!o# a&& $an0in+
He %#ote:
T"e (#esent -on+ition o! nations is a #esu&t o! t"e a--u$u&ation o! a&&
t"e +is-o/e#ies, in/entions, i$(#o/e$ents, #e!ine$ents, an+ e!!o#ts o!
a&& t"e gene#ations t"at &i/e+ )e!o#e us< t"e' !o#$ t"e intellectual
capital of li-ing $an0in+, an+ e/e#' nation is on&' (#o+u-ti/e to t"e
e>tent t"at t"e' "a/e 0no%n "o% ta0e u( into t"e$se&/es t"e a-"ie/e-
$ents o! ea#&ie# gene#ations an+ to in-#ease t"ose t"#oug" t"ei# o%n
a-9uisitions
As an e>a$(&e o! t"ese 1o%n a-9uisitions,1 List se&e-ts t"e stea$ engine:
1Let us #e-a&& "e#e t"e (#o+u-tions o! t"e !e% %"ose %o#0 is #es(onsi)&e !o#
t"e in/ention an+ i$(#o/e$ent o! t"e stea$ engine T"e' "a/e gi/en to
a s$a&& nu$)e# o! $en t"e (o%e# to (e#!o#$ %o#0 !o# %"ose a--o$(&is"-
$ent (#e/ious&' $i&&ions o! $en %ou&+ "a/e )een ne-essa#'1 T"is in/en-
tion a&one $eant, "e sai+, as $u-" !o# (#o+u-tion in t"e nineteent" -entu#'
as 1a&& t"e in/entions an+ +is-o/e#ies o! t"e !i!teent" -entu#' ta0en toget"e#1
A--o#+ing to List, t"e state $ust inte#/ene in t"e e-ono$' to !oste# g#o%t",
(a#ti-u&a#&' in t"e a#ea o! in!#ast#u-tu#e in/est$ent T"e te#$ !o# t"is,
1+i#igisti-,1 is ta0en !#o$ t"e F#en-", %"e#e it is i+enti!ie+ %it" t"e si$i&a#
e-ono$i- (o&i-ies a+/o-ate+ )' La4a#e =a#not T"is is so, i! a nation %is"es
to se-u#e its (#os(e#it' in t"e &ong #un, an+ "o&+ its o%n %it" ot"e# nations
5n&' t"#oug" t"e -ontinua& )ui&+u( o! t"e (o%e#s o! $anu!a-tu#ing, a--o#+-
ing to List, -an a (#og#essi/e g#o%t" in in+ust#' an+ ag#i-u&tu#e )e ensu#e+
!o# t"e !utu#e T"is is t"e )est gua#antee against an' #et#og#a+e +e/e&o(-
$ent T"us, "e sai+, %e s"ou&+ $aintain a 1g#o%t" o! t"e (#o+u-ti/e (o%e#s
t"at in-#eases geo$et#i-a&&' #at"e# t"an a#it"$eti-a&&'1 5n&' in t"at %a'
%i&& a su!!i-ient +e!ense )e gua#antee+ sin-e, i! t"e in+ust#' o! a -ount#' is
#uine+, it %ou&+ )e-o$e an i$(otent to' !o# ot"e# (o%e#s6a t"eo#' t"at
(#esent +a' (o&iti-ians s"ou&+ ta0e -a#e!u& note o!
8uil!ing the -erman Nation
=onse9uent&', it is t"e o)&igation o! t"e state to -#eate t"e (#e-on+itions !o#
g#o%t" an+ t"e (#ote-tion o! +o$esti- in+ust#ies T"at $eant in List.s ti$e
t"e -#eation o! a uni!ie+ to&& s'ste$ !o# t"e 3e#$an states #at"e# t"an
unne-essa#i&' "a$(e#ing 3e#$an in+ust#' %it" 3F +i!!e#ent +o$esti-
3e#$an to&& )oun+a#ies, an+ #en+e#ing t"e goo+s (#o+u-e+ at "o$e unne--
essa#i&' e>(ensi/e 3e#$an', List sai+, s"ou&+ %o#0 on !o#eign t#a+e,
es(e-ia&&' on )ui&+ing u( !o#eign t#a+e %it" t"e -o&onies, !o# 1%"at is a
nation %it"out %o#&+ t#a+e,1 an+ si$u&taneous&' to se-u#e t"e -o&onies %it"
a na/a& !&eet
T"is (o&i-' #e(#esente+ a +e-&a#ation o! %a# against Eng&an+, %"i-" +o$i-
nate+ t#a+e on t"e -ontinent as %e&& as %o#&+ t#a+e %it" its su(e#io# sea
(o%e#
,ist propose! the construction o" a !ense railroa! networ9 throughout
Europe' inclu!ing a lin9 "rom Csten!e' a seaport in northeast 8elgium' to
8omay' )n!ia. Shown here is his own s9etch "or a -erman railway system'
pulishe! in an #&(( pamphlet.
T"e se-on+ -#u-ia& tas0 t"at List as-#i)e+ to t"e state -onsiste+ in (#o/i+ing
!o# an in-#ease in t"e nation.s (#o+u-ti/it' t"#oug" t"e -#eation o! a !un-tion-
ing in!#ast#u-tu#e List +ese#/es t"e -#e+it as none ot"e# !o# "a/ing #e-og-
ni4e+ t"e e-ono$i- an+ (o&iti-a& i$(o#tan-e o! -ana&s an+ #oa+s, an+ o! t"e
esta)&is"$ent o! a #ai& s'ste$ !o# t"e -#eation o! a nation
,ut t"at is not enoug": t"e state $ust a&so -ont#i)ute to an a%a0ening o! an
a((#e-iation o! in+ust#' an+ t"e a#ts t"#oug" nationa& in+ust#ia& e>"i)its an+
nationa& institutions o! &ea#ning T"us List +e$an+e+ t"e esta)&is"$ent o! a
nationa& s-"oo& !o# in+ust#' an+ a gene#a& 3e#$an t#a+e-an+-)usiness
-oun-i& t"at %ou&+ assist t"e nationa& asse$)&' *n+e# its &ea+e#s"i(, a
nationa& in+ust#ia& e>"i)it %ou&+ ta0e (&a-e at e/e#' $a#0et< it %ou&+ a&so
a%a#+ (#i4es !o# use!u& in/entions, an+ +ist#i)ute (atents
Fina&&', it is t"e o)&igation o! t"e state to -#eate a goo+ -onstitution, at t"e
-ente# o! %"i-" stan+s t"e /a&ue o! e/e#' in+i/i+ua& "u$an )eing an+ "is
-ont#i)ution to t"e i$(#o/e$ent o! t"e state List 0ne% t"at t"e &e/e& o!
-u&tu#e, e+u-ation, an+ $o#a&it' u&ti$ate&' +ete#$ines t"e (#o+u-ti/it' o! a
so-iet' 1T"#oug" &a%s, institutions, an+ a goo+ a+$inist#ation, %e $ust (ut
an en+ to !anati-is$, su(e#stition, &et"a#g', igno#an-e, an+ e>t#a/agan-e< %e
$ust !oste# e+u-ation, t"e s-ien-es, $o#a&it', an+ t"e +e/e&o($ent o!
sensiti/it'1
In 1ED7, List $et ="a#&es Inge#so&&, t"e Ii-e P#esi+ent o! t"e Penns'&/ania
So-iet' !o# t"e P#o$otion o! ;anu!a-tu#ing an+ t"e ;e-"ani-a& A#ts, at t"e
Ha##is)u#g =on/ention, %"i-" "a+ )een -a&&e+ to %in o/e# =ong#ess to an
in-#ease in (#ote-ti/e ta#i!!s T"is en-ounte#e+ )itte# #esistan-e !#o$ t"e
,#itis" &o))' in t"e *nite+ States, a)o/e a&& !#o$ t"e s&a/e"o&+e#s on t"e
g#eat -otton (&antations in t"e Sout", %"o %ante+ to se&& t"ei# -otton in
Eng&an+, an+ !#o$ t"e 1)&ue-)&oo+s1 o! Ang&o("i&i- !inan-ia& -i#-&es in
,oston
T"e (#in-i(a& i+eo&ogue o! t"ese -i#-&es %as t"e ,#itis"-)o#n D# T"o$as
=oo(e# o! Sout" =a#o&ina =o&&ege, %"o %an+e#e+ a)out %it" 1t"e ,i)&e o!
!#ee t#a+e,1 A+a$ S$it".s !ealth of ,ations3 As List !itting&' #e$a#0e+, t"e
9uestion %as, %"' +i+ t"is )oo0 "a/e t"is (a#ti-u&a# tit&eG *&ti$ate&',
e/e#'one %"o !o&&o%e+ its t"eo#ies )e-a$e, soone# o# &ate#, )an0#u(t
=oo(e# asse#te+ t"at in+ust#ia&i4ation o! t"e No#t" %ou&+ ta0e (&a-e at t"e
e>(ense o! t"e Sout"< a&& t"e %ea&t" t"at t"e Sout" %as (#o+u-ing %ou&+ )e
s%a&&o%e+ u( )' t"e in+ust#ia&i4ation o! t"e No#t" In 1ED7, "e )e-a$e t"e
!i#st to o(en&' t"#eaten se-ession
;at"e% =a#e' -"a#a-te#i4e+ t"e g#ou(ing a#oun+ =oo(e# as an o!!s"oot o!
t"e ,#itis" se-#et se#/i-e, %"i-" in !a-t it %as =oo(e# "a+ )een a $e$)e#
o! Pa#&ia$ent in Eng&an+, an+ "a+ )een sent to F#an-e as t"e o!!i-ia& #e(#e-
sentati/e o! t"e ,#itis" 2a-o)in =&u)s to in!&a$e t"e #e/o&ution t"e#e In t"e
*nite+ States, "e %as (&a-e+ as tea-"e# )' t"e S%iss !a$i&' +e Saussu#e in
Sout" =a#o&ina =o&&ege, a!te# "e "a+ )een #eBe-te+ )' t"e go/e#n$ent
nu$e#ous ti$es as in-o$(etent an+ -o##u(t
In "is !a$ous t%e&/e &ette#s to ="a#&es Inge#so&&, List Boine+ t"e !ig"t against
t"e se-essionists =oo(e# %as an a/i+ su((o#te# o! A+a$ S$it" T"ese
&ette#s a((ea#e+ un+e# t"e tit&e 5utlines of olitical $conomy in P"i&a+e&-
("ia.s &a#gest ne%s(a(e#, t"e ,ational *a#ette, as %e&& as in F0 ot"e# *S
ne%s(a(e#s, an+ set o!! an e>-ite+ +e)ate
In &ette#s, a$ong ot"e#s to 3o/e#no# 3i&es o! Ii#ginia, $an' a#ti-&es, an+ a
s(ee-" to )ot" "ouses o! t"e Penns'&/ania Legis&atu#e in Ha##is)u#g, List
e>(&aine+ "is (osition He a&so %#ote, on +e$an+ !#o$ Inge#so&&, a$ong
ot"e#s, a #e(o#t to t"e Wa's an+ ;eans =o$$ittee, %"i-" &egis&ati/e
in!&uen-e+ t"e -ong#essiona& +e)ate on "ig"e# ta#i!!s In 1ED7, t"e Penns'&-
/ania So-iet' "ono#e+ List.s se#/i-es %it" a )an9uet in P"i&a+e&("ia
5utlines is a s'ste$ati- -on!#ontation %it" t"e t"eo#ies o! t"e ,#itis" !#ee-
t#a+e# A+a$ S$it" an+ "is a(o&ogist =oo(e# T"e (#in-i(a& a#gu$ent o! t"is
s-"oo& #an a((#o>i$ate&' as !o&&o%s: i! "ig" i$(o#t ta#i!!s on ,#itis" $anu-
!a-tu#ing goo+s %e#e a+o(te+, as No#t"e#n !a#$e#s an+ in+ust#ia&ists
a+/o-ate+, t"at %ou&+ tu#n Eng&an+, %"i-" is t"e (#in-i(a& $a#0et !o#
A$e#i-an -otton, into an ene$'
A++itiona&&', in+ust#ia& goo+s, %"i-" $ust )e i$(o#te+ !#o$ Eng&an+ %it"
"ig"e# ta#i!!s, %i&& )e-o$e $o#e e>(ensi/e It is 1$u-" $o#e #easona)&e1 to
)u' %"e#e it is -"ea(est, an+ sin-e A$e#i-a -annot (#o+u-e as -"ea(&' as
Eng&an+, goo+s $ust )e o)taine+ !#o$ Eng&an+, in t"e inte#est o! t"e enti#e
(o(u&ation A&& t"at %as gua#antee+ %it" ("i&ant"#o(i- assu#an-es t"at it is
a&so "a#$!u& !#o$ t"e ("i&oso("i-a& (oint o! /ie% i! in+i/i+ua& states, using
(o&iti-a& $easu#es, +isso-iate+ !#o$ ot"e#s< !a# )ette#, t"e t"eo#' -ontinue+,
is a -os$o(o&itanis$ t"at %i&& $a0e (ossi)&e t"e "a((' uni!i-ation o! a&&
$an0in+
T"is +o-t#ine o! !#ee t#a+e, as List sai+ in "is 5utlines, is $eant on&' !o# an
1e>(o#t1 !#o$ t"e ,#itis" E$(i#e: ot"e# nations s"ou&+ a)o&is" t"ei# (#ote--
tion against Eng&an+< Eng&an+ itse&!, "o%e/e#, a+o(te+ ta#i!!s on t"e %"eat
an+ $anu!a-tu#e+ goo+s o! ot"e# nations List "a+ )een a)&e to gat"e#
su!!i-ient e>(e#ien-e %it" t"is (o&i-' t"#oug" "is a-ti/ities in -onne-tion
%it" t"e =usto$s *nion in 3e#$an' As "e again an+ again e$("asi4e+,
t"e on&' +e/i-e !o# st#engt"ening Eu#o(ean in+ust#' "a+ )een t"e -ontinenta&
)an t"at Na(o&eon "a+ i$(ose+ on Eng&an+ A!te# its a)o&ition, in+ust#'
#a(i+&' %ent +o%n"i&& sin-e t"e $a#0et stoo+ o(en to, an+ %as %it"out
(#ote-tion against, ,#itis" goo+s
List -&ea#&' sa% t"at in A$e#i-a, t"e sa$e 9uestion -ontinue+ to )e i$-
(o#tant in a $o#e +#a$ati- %a' T"e ,#itis" E$(i#e %it" its !#ee-t#a+e
(#o(agan+a an+ its +u$(ing (o&i-' inten+e+ not on&' to +est#o' Eu#o(ean
in+ust#' )ut a&so to #e-on9ue# A$e#i-a
,ist's -ran! Design
In 1E30, List )e-a$e a *S -iti4en, an+ i$$e+iate&' #etu#ne+ to Eu#o(e:
!i#st to F#an-e, %"e#e "e -a##ie+ out negotiations on a t#a+e ag#ee$ent
)et%een F#an-e an+ t"e *nite+ States on )e"a&! o! t"e *S go/e#n$ent
T"e Re/o&ution o! 1E30 "a+ #e-ent&' )#oug"t t"e 1-iti4en 0ing1 Louis
P"i&i((e Du0e o! 5#&eans to (o%e#, an+ La!a'ette atte$(te+ to gain in-
!&uen-e %it" t"e ne% go/e#n$ent
List %as %e&& a-9uainte+ %it" t"e F#en-" +i#igisti- e-ono$i- s-"oo& o!
=o&)e#t an+ "is !o&&o%e#s In "is 5utlines of Po&iti-a& E-ono$', "e "a+
!#e9uent&' #e!e##e+ to =o&)e#t, in %"ose t#a+ition su-" -onte$(o#a#ies o!
List as ="a(ta& an+ 3as(a#+ ;onge stoo+ In 179C, =a#not "a+ esta)&is"e+
t"e E-o&e Po&'te-"ni9ue an+ t"us, as List sai+, "a+ +e-isi/e&' -ont#i)ute+ to
t"e 1g#eatness o! F#an-e1 In 1E19, ="a(ta&, F#en-" ;iniste# o! t"e Inte#io#
!#o$ 1E00 to 1E0C, %#ote a )oo0, 5n French .ndustry3 A&so in 1E19, t"e
s-ientist an+ e-ono$ist De##ie#, %"o$ List o!ten 9uote+, %#ote a $ani!esto
against A+a$ S$it", %"i-" )e-a$e t"e !oun+ation o! F#en-" in+ust#ia&
(o&i-' In F#an-e, a -on-e(tion o! t"e e-ono$' t"at a((#oa-"e+ t"at o! List
%as "ege$oni-
List e/entua&&' #etu#ne+ %it" "is !a$i&' to Eu#o(e in 1E3D His a((oint$ent
as *S -onsu& to Ha$)u#g an+ ,a+en %as sa)otage+ !o# (o&iti-a& #easons,
an+ "e -on-e#ne+ "i$se&! %it" t"e -onsu&a# (osition in Lei(4ig, %"i-" "e
#e-ei/e+ in 1E3C a!te# a +i!!i-u&t st#ugg&e T"e (osition %as e>t#e$e&'
)ene!i-ia& !o# List.s (&ans: Lei(4ig %as t"e -ente# o! a &a#ge t#a+e !ai#, an+
%as a $eeting (&a-e o! 3e#$an in+ust#' an+ si$u&taneous&' a -ente# o!
-u&tu#e List "a+ a %a#$ !#ien+s"i( %it" =&a#a Wie-0 an+ Ro)e#t S-"u-
$ann, %"o &i/e+ t"e#e
5n 2anua#' 1, 1E3C, t"e 3e#$an Lo&&/e#ein 7=usto$s *nion8 !o# %"i-" List
"a+ !oug"t %ent into e!!e-t At !i#st, t"e P#ussian-Hessian an+ t"e ,a/a#ian-
WH#tte$)e#g =usto$s A&&ian-e )e&onge+ to t"e Lo&&/e#ein< in 1E36, ,a+en,
Nassau, an+ F#an0!u#t a$ ;ain Boine+ In 1ECD, ,#auns-"%eig an+ Lu>e$-
)ou#g %e#e a+$itte+, an+ )et%een 1EF1 an+ 1EFC, Hano/e# an+ 5&+en)u#g<
in 1E6E, ;e-0&en)u#g an+ Lii)e-0< ,#e$en an+ Ha$)u#g Boine+ in 1EEE
In -ont#ast to t"e o!ten #at"e# s$a&&-$in+e+ t"in0ing o! "is -onte$(o#a#ies,
List assu$e+ !#o$ t"e )eginning a 13#an+ Design1 t"at en-o$(asse+ a&& o!
Eu#o(e His (#o(osa& to )ui&+ a #ai&#oa+ !#o$ 5sten+e, a sea(o#t in no#t"east
,e&giu$, to ,o$)a', In+ia, i&&ust#ates t"e (oint List "a+ -&ose -onta-ts in
,e&giu$ an+ F#an-e He (#o(ose+ t"at t"e #e-ent&' !oun+e+ state o! ,e&-
giu$, !o# %"i-" "e %o#0e+ out #ai&%a' (&ans, )e in-o#(o#ate+ into t"e
3e#$an Lo&&/e#ein, t"e#e)' o(ening u( t"e a--ess to t"e At&anti- 5-ean so
i$(o#tant to 3e#$an in+ust#' Su-" a--ess %as )&o-0e+ at t"e ti$e )' t"e
Dut-" %it" "ig" s"i((ing to&&s on t"e S-"eie an+ R"ine Ri/e#s
In 1EC6, List #etu#ne+ !#o$ a /isit in Eng&an+ t"at &aste+ $an' $ont"s He
"a+ )een (#essu#e+ into t"e t#i( )' -&ose a-9uaintan-es o! t"e ,#itis" #o'a&
"ouse in ,a/a#ia, an+ #etu#ne+ tota&&' #uine+, (s'-"o&ogi-a&&' an+ ("'si-
-a&&' ;u-" (oints to t"e !a-t t"at List, %"o ot"e#%ise enBo'e+ e>-e&&ent
"ea&t", "a+ )een +e&i)e#ate&' (s'-"o&ogi-a&&' +esta)i&i4e+ on t"is t#i(6
(ossi)&' -o$)ine+ %it" +oses o! +#ugs 5n a t#i( to Ita&', %"i-" %as
su((ose+ to #esto#e "is "ea&t", "e too0 "is o%n &i!e, s"ooting "i$se&! %it" a
(isto&, in Au!stein on No/e$)e# 30, 1EC6
Wit" List.s +eat", 3e#$an' too ea#&' &ost t"e $ost i$(o#tant +#i/ing !o#-e o!
its in+ust#ia& +e/e&o($ent6an+ 'et "is %o#0 (#o/i+e+ an in/a&ua)&e !oun+a-
tion !o# t"e &ate# as-ent o! 3e#$an' into t"e status o! an in+ust#ia& su(e#-
(o%e# T"is (#o/es "o% #ig"t t"e A$e#i-an S'ste$ o! Po&iti-a& E-ono$'
t"at List in-o#(o#ate+ is6Bust as +oes t"e #ise o! 2a(an, %"i-" )egan in t"e
se-on+ "a&! o! t"e nineteent" -entu#' to )ui&+ u( its in+ust#' in a $anne#
-o##es(on+ing to List.s e-ono$i- gui+e&ines