Bastiat and the French Hat: A note on Bastiat, Chapter 7, Restraint of Trade Either Bastiat or the translators are

a little unclear on an example. The paragraphs are numbered below. I give a crucial explanation in boldface. 1.139 But this is not all. I have said that a third person was always left in the shadow. I must make him appear here, so that he can reveal to us a second loss of five francs. Then we shall have the results of the operation in its entirety. 1.140 ames !oodfellow has fifteen francs, the fruit of his la"ors. #$e are "ack at the time when he is still free.% $hat does he do with his fifteen francs& 'e "uys an article of millinery for ten francs, and it is with this article of millinery that he pays #or his middleman pays for him% for the hundred kilo(rams of Bel(ian iron. 'e still has five francs left. 'e does not throw them into the river, "ut #and this is what is not seen% he (ives them to some manufacturer or other in e)chan(e for some satisfaction*for e)ample, to a pu"lisher for a copy of the Discourse on Universal History by Bossuet.+1, What Bastiat means by the previous paragraph hinted at by the term !midd"eman! is this# $ames %oodfe""o& has '( francs# He pays ') francs to a Be"gian iron producer and buys a boo* for ( francs# What does the iron producer do &ith the ') francs, a currency that Be"gian businesses &on+t accept, He buys an artic"e of French mi""inery -a French hat. for ') francs# /o if &e "oo* at ho& French industry is encouraged, it is by ') francs for a hat and ( francs for a boo*# 1.141 Thus, he has encoura(ed domestic industry to the amount of fifteen francs, to wit10 francs to the .arisian milliner / francs to the pu"lisher 1.140 1nd as for ames !oodfellow, he (ets for his fifteen francs two o"2ects of satisfaction, to wit1. 1 hundred kilo(rams of iron 0. 1 "ook 1.143 3omes the decree. 1.144

$hat happens to ames !oodfellow& $hat happens to domestic industry& 1.14/ ames !oodfellow, in (ivin( his fifteen francs to the last centime to 4r. .rotectionist for a hundred kilo(rams of iron, has nothin( now "ut the use of this iron. 'e loses the en2oyment of a "ook or of any other e5uivalent o"2ect. 'e loses five francs. 6ou a(ree with this7 you cannot fail to a(ree7 you cannot fail to a(ree that when restraint of trade raises prices, the consumer loses the difference.
1.146

But it is said that domestic industry gains the difference.

1.147

No, it does not gain it; for, since the decree, it is encouraged only as much as it was before, to the amount of fifteen francs.
1.148

Only, since the decree, the fifteen francs of ames !oodfellow go to metallurgy, while before the decree they were di"ided between millinery and #ublishing.