soldiers, I have frequently heard it observed, | first taught it, were by no means such fools
are at first debauched by the cheapness and as they who believed it. In every country it
novelty of good wine; but after a few months always is, and must be, the interest of the
residence, the greater part of them become as great body of the people, to buy whatever they
sober as the rest of the inhabitants. Were want of those who sell it cheapest. The pro-
the duties upon foreign wines, and the ex-position is so very manifest, that it seems ridi-
cises upon malt, beer, and ale, to be taken culous to take any pains to prove it; nor could
away all at once, it might, in the same man- it ever have been called in question, had not
ner, occasion in Great Britain a pretty gene- the interested sophistry of merchants and ma
ral and temporary drunkenness among the nufacturers confounded the common sense of
middling and inferior ranks of people, which mankind. Their interest is, in this respect,
would probably be soon followed by a perma- directly opposite to that of the great body of
nent and almost universal sobriety. At pre- the people. As it is the interest of the free-
sent, drunkenness is by no means the vice of men of a corporation to hinder the rest of the
people of fashion, or of those who can easily inhabitants from employing any workmen but
afford the most expensive liquors. A gentle- themselves; so it is the interest of the mer-
man drunk with ale has scarce ever been seen chants and manufacturers of every country to
among us. The restraints upon the wine trade secure to themselves the monopoly of the V
in Great Britain, besides, do not so much home market. Hence, in Great Britain, and
seem calculated to hinder the people from go-in most other European countries, the extra-

ing, if I may say so, to the alehouse, as from ordinary duties upon almost all goods import-e:

going where they can buy the best and cheap-ed by alien merchants. Hence the high du-
est liquor. They favour the wine trade of ties and prohibitions upon all those foreign
Portugal, and discourage that of France. The manufactures which can come into competi-
Portuguese, it is said, indeed, are better cus- tion with our own. Hence, too, the extraor-
tomers for our manufactures than the French, dinary restraints upon the importation of al-
and should therefore be encouraged in prefer-most all sorts of goods from those countries
ence to them. As they give us their custom, with which the balance of trade is supposed
it is pretended we should give them ours. The to be disadvantageous; that is, from those
sneaking arts of underling tradesmen are thus against whom national animosity happens to
erected into political maxims for the conduct be most violently inflamed.
of a great empire; for it is the most under-
ling tradesmen only who make it a rule to
employ chiefly their own customers. A great
trader purchases his goods always where they
are cheapest and best, without regard to any
little interest of this kind.

The wealth of neighbouring nations, how-
ever, though dangerous in war and politics, is
certainly advantageous in trade.
In a state
of hostility, it may enable our enemies to
maintain fleets and armies superior to our
own; but in a state of peace and commerce.
By such maxims as these, however, nations it must likewise enable them to exchange with.
have been taught that their interest consisted us to a greater value, and to afford a better
in beggaring all their neighbours. Each na- market, either for the immediate produce of
tion has been made to look with an invidious our own industry, or for whatever is purchased
eye upon the prosperity of all the nations with with that produce. As a rich man is likely
which it trades, and to consider their gain as to be a better customer to the industrious peo-
its own loss. Commerce, which ought natu- ple in his neighbourhood, than a poor, so is
rally to be, among nations as among indivi-likewise a rich nation. A rich man, indeed,
duals, a bond of union and friendship, has be- who is himself a manufacturer, is a very dan-
come the most fertile source of discord and gerous neighbour to all those who deal in the
animosity. The capricious ambition of kings same way. All the rest of the neighbourhood,
and ministers has not, during the present and however, by far the greatest number, profit by
the preceding century, been more fatal to the the good market which his expense affords
repose of Europe, than the impertinent jeal-them. They even profit by his underselling
ousy of merchants and manufacturers. The the poorer workmen who deal in the same way
violence and injustice of the rulers of man- with him. The manufacturers of a rich na-
kind is an ancient evil, for which, I am afraid, tion, in the same manner, may no doubt be
the nature of human affairs can scarce admit very dangerous rivals to those of their neigh
of a remedy but the mean rapacity, the mo- bours. This very competition, however, is
nopolizing spirit, of merchants and manufac- advantageous to the great body of the people,
turers, who neither are, nor ought to be, the who profit greatly, besides, by the good mar-
rulers of mankind, though it cannot, perhaps, ket which the great expense of such a nation
be corrected, may very easily be prevented affords them in every other way. Private
from disturbing the tranquillity of anybody people, who want to make a fortune, never
but themselves.
think of retiring to the remote and poor pro
That it was the spirit of monopoly which vinces of the country, but resort either to the
originally both invented and propagated this capital, or to some of the great commercial
doctrine, cannot be doubted and they who towns. They know, that where little wealth

circulates, there is little to be got; but that posed to contain 24,000,000 of inhabitants. where a great deal is in motion, some share Our North American colonies were never supof it may fall to them. The same maxim posed to contain more than 3,000,000; and which would in this manner direct the com- France is a much richer country than North mon sense of one, or ten, or twenty indivi- America; though, on account of the more duals, should regulate the judgment of one, unequal distribution of riches, there is much or ten, or twenty millions, and should make more poverty and beggary in the one country a whole nation regard the riches of its neigh-than in the other. France, therefore, could bours, as a probable cause and occasion for it-afford a market at least eight times more exself to acquire riches. A nation that would tensive, and, on account of the superior fre enrich itself by foreign trade, is certainly mosquency of the returns, four-and-twenty times likely to do so, when its neighbours are all more advantageous than that which our North rich, industrious and commercial nations. A American colonies ever afforded. The trade great nation, surrounded on all sides by wan- of Great Britain would be just as advanta dering savages and poor barbarians, might, no geous to France, and, in proportion to the doubt, acquire riches by the cultivation of its wealth, population, and proximity of the recwn lands, and by its own interior commerce,spective countries, would have the same supeIut not by foreign trade. It seems to have riority over that which France carries on with Feen in this manner that the ancient Egypti- her own colonies. Such is the very great ans and the modern Chinese acquired their difference between that trade which the wisgreat wealth. The ancient Egyptians, it is dom of both nations has thought proper to said, neglected foreign commerce, and the modiscourage, and that which it has favoured the dern Chinese, it is known, hold it in the utmost. most contempt, and scarce deign to afford it

But the very same circumstances which

the decent protection of the laws. The mo- would have rendered an open and free comdern maxims of foreign commerce, by aiming merce between the two countries so advanta at the impoverishment of all our neighbours, geous to both, have occasioned the principal so far as they are capable of producing their obstructions to that commerce. Being neighintended effect, tend to render that very com-bours, they are necessarily enemies, and the merce insignificant and contemptible.

wealth and power of each becomes, upon that account, more formidable to the other; and what would increase the advantage of national friendship, serves only to inflame the violence of national animosity. They are both rich and industrious nations; and the merchants and

It is in consequence of these maxims, that the commerce between France and England has, in both countries, been subjected to so many discouragements and restraints. If those two countries, however, were to consider their real interest, without cither mercantile jealousy manufacturers of each dread the competition or national animosity, the commerce of France of the skill and activity of those of the other, might be more advantageous to Great Britain Mercantile jealousy is excited, and both inthan that of any other country, and, for the flames, and is itself inflamed, by the violence same reason, that of Great Britain to France. of national animosity, and the traders of both France is the nearest neighbour to Great Bri- countries have announced, with all the passiontain. In the trade between the southern coast ate confidence of interested falsehood, the cerof England and the northern and north-west-tain ruin of each, in consequence of that unern coast of France, the returns might be ex-favourable balance of trade, which, they prepected, in the same manner as in the inland tend, would be the infallible effect of an untrade, four, five, or six times in the year. The restrained commerce with the other. capital, therefore, employed in this trade could, There is no commercial country in Europe, in each of the two countries, keep in motion of which the approaching ruin has not fre four, five, or six times the quantity of indus- quently been foretold by the pretended doctry, and afford employment and subsistence tors of this system, from an unfavourable ba to four, five, or six times the number of peo-lance of trade. After all the anxiety, how ple, which an equal capital could do in the ever, which they have excited about this, after greater part of the other branches of foreign trade. Between the parts of France and Great Britain most remote from one another, the returns might be expected, at least, once in the year; and even this trade would so far be in any respect, impoverished by this cause. at least equally advantageous, as the greater Every town and country, on the contrary, in part of the other branches of our foreign Eu- proportion as they have opened their ports te ropean trade. It would be, at least, three all nations, instead of being ruined by this times more advantageous than the boasted free trade, as the principles of the commercial trade with our North American colonies, in system would lead us to expect, have been en which the returns were seldom made in less riched by it. Though there are in Europe, than three years, frequently not in less than indeed, a few towns which, in some respects, four or five years. France, besides, is sup- deserve the name of free ports, there is ne

all the vain attempts of almost all trading nations to turn that balance in their own favour, and against their neighbours, it does not appear that any one nation in Europe has been,

country which does so. Holland, perhaps, approaches the nearest to this character of any, though still very remote from it; and Holland, it is acknowledged, not only derives its whole wealth, but a great part of its necessary subsistence, from foreign trade.

CHAP. IV.

OF DRAWBACKS.

There is another balance, indeed, which has MERCHANTS and manufacturers are not con. already been explained, very different from tented with the monopoly of the home market, the balance of trade, and which, according as but desire likewise the most extensive foreign it happens to be either favourable or unfav- sale for their goods. Their country has no durable, necessarily occasions the prosperity jurisdiction in foreign nations, and therefore decay of every nation. This is the balance can seldom procure them any monopoly there. of the annual produce and consumption. If They are generally obliged, therefore, to conthe exchangeable value of the annual produce, tent themselves with petitioning for certain it has already been observed, exceeds that of encouragements to exportation. the annual consumption, the capital of the so- Of these encouragements, what are called Xciety must annually increase in proportion to drawbacks seem to be the most reasonable. this excess. The society in this case lives with- To allow the merchant to draw back upon exin its revenue; and what is annually saved portation, either the whole, or a part of whatout of its revenue, is naturally added to its ca- ever excise or inland duty is imposed upon pital, and employed so as to increase still fur- domestic industry, can never occasion the exther the annual produce. If the exchange-portation of a greater quantity of goods than Jable value of the annual produce, on the con- what would have been exported had no duty rary, fall short of the annual consumption, been imposed. Such encouragements do not the capital of the society must annually decay tend to turn towards any particular employin proportion to this deficiency. The expense ment a greater share of the capital of the of the society, in this case, exceeds its reve-country, than what would go to that employnue, and necessarily encroaches upon its ca- ment of its own accord, but only to hinder pital. Its capital, therefore, must necessarily the duty from driving away any part of that decay, and, together with it, the exchangeable share to other employments. They tend not value of the annual produce of its industry. to overturn that balance which naturally esThis balance of produce and consumption tablishes itself among all the various employis entirely different from what is called the ments of the society, but to hinder it from be balance of trade. It might take place in a ing overturned by the duty. They tend not nation which had no foreign trade, but which to destroy, but to preserve, what it is in most was entirely separated from all the world. cases advantageous to preserve, the natural It may take place in the whole globe of the division and distribution of labour in the soearth, of which the wealth, population, and ciety. improvement, may be either gradually increasing or gradually decaying.

The same thing may be said of the drawbacks upon the re-exportation of foreign goods The balance of produce and consumption imported, which, in Great Britain, generally may be constantly in favour of a nation, though amount to by much the largest part of the what is called the balance of trade be generally duty upon importation. By the second of the against it. A nation may import to a greater rules, annexed to the act of parliament, which value than it exports for half a century, per- imposed what is now called the old subsidy, haps, together; the gold and silver which every merchant, whether English or alien comes into it during all this time, may be all was allowed to draw back half that duty upon immediately sent out of it; its circulating exportation; the English merchant, provided coin may gradually decay, different sorts of the exportation took place within twelve paper money being substituted in its place, months; the alien, provided it took place and even the debts, too, which it contracts in within nine months. Wines, currants, and the principal nations with whom it deals, may wrought silks, were the only goods which did be gradually increasing; and yet its real not fall within this rule, having other and wealth, the exchangeable value of the annual more advantageous allowances. The duties produce of its lands and labour, may, during imposed by this act of parliament were, at the same period, have been increasing in a that time, the only duties upon the importanuch greater proportion. The state of our tion of foreign goods. The term within which North American colonies, and of the trade this, and all other drawbacks could be claimwhich they carried on with Great Britain, be- ed, was afterwards (by 7 Geo. I. chap. 21. fore the commencement of the present dis- sect. 10.) extended to three years. rurbances, may serve as a proof that this is by no means an impossible supposition.

Note 29.

This paragraph was written in the year 1775.

The duties which have been imposed since the old subsidy, are, the greater part of them, wholly drawn back upon exportation. This general rule, however. is liable to a great

number of exceptions; and the doctrine of which were imposed either at the same time drawbacks has become a much less simple or subsequent to the old subsidy, what is called matter than it was at their first institution. the additional duty, the new subsidy, the oneUpon the exportation of some foreign third and two-thirds subsidies, the impos: goods, of which it was expected that the im- 1692, the tonnage on wine, were allowed to portation would greatly exceed what was ne- be wholly drawn back upon exportation. All cessary for the home consumption, the whole those duties, however, except the additional duties are drawn back, without retaining even duty and impost 1692, being paid down in half the old subsidy. Before the revolt of our ready money upon importation, the interest of North American colonies, we had the monopoly so large a sum occasioned an expense, which of the tobacco of Maryland and Virginia. We made it unreasonable to expect any profitable imported about ninety-six thousand hogsheads, carrying trade in this article. Only a part, and the home consumption was not supposed therefore of the duty called the impost on to exceed fourteen thousand. To facilitate wine, and no part of the twenty-five pounds the great exportation which was necessary, in the ton upon French wines, or of the duties order to rid us of the rest, the whole duties imposed in 1745, in 1763, and in 1778, were were drawn back, provided the exportation allowed to be drawn back upon exportation. took place within three years. The two imposts of five per cent. imposed in We still have, though not altogether, yet 1779 and 1781, upon all the former duties of very nearly, the monopoly of the sugars of customs, being allowed to be wholly drawn our West Indian islands. If sugars are ex-back upon the exportation of all other goods, ported within a year, therefore, all the duties were likewise allowed to be drawn back upon upon importation are drawn back; and if that of wine. The last duty that has been exported within three years, all the duties, particularly imposed upon wine, that of 1780, except half the old subsidy, which still conti-is allowed to be wholly drawn back; an innues to be retained upon the exportation of dulgence which, when so many heavy duties the greater part of goods. Though the im-are retained, most probably could never occaportation of sugar exceeds a good deal what is necessary for the home consumption, the excess is inconsiderable, in comparison of what it used to be in tobacco.

sion the exportation of a single ton of wine. These rules took place with regard to all places of lawful exportation, except the Bri tish colonies in America.

The 15th Charles II, chap. 7, called an act for the encouragement of trade, had given Great Britain the monopoly of supplying the colonies with all the commodities of the growth

with wines. In a country of so extensive a

Some goods, the particular objects of the jealousy of our own manufacturers, are prohibited to be imported for home consumption. They may, however, upon paying certain duties, be imported and warehoused for exporta-or manufacture of Europe, and consequently tion. But upon such exportation no part of these duties is drawn back. Our manufac- coast as our North American and West Inturers are unwilling, it seems, that even this dian colonies, where our authority was always restricted importation should be encouraged, so very slender, and where the inhabitants and are afraid lest some part of these goods were allowed to carry out in their own ships should be stolen out of the warehouse, and their non-enumerated commodities, at first to thus come into competition with their own, all parts of Europe, and afterwards to all It is under these regulations only that we can parts of Europe south of Cape Finisterre, it import wrought silks, French cambrics and is not very probable that this monopoly could lawns, calicoes, painted, printed, stained, or dyed, &c.

We are unwilling even to be the carriers of French goods, and choose rather to forego a profit to ourselves than to suffer those whom we consider as our enemies to make any pro fit by our means. Not only half the old subsidy, but the second twenty-five per cent. is retained upon the exportation of all French goods.

By the fourth of the rules annexed to the old subsidy, the drawback allowed upon the exportation of all wines amounted to a great deal more than half the duties which were at that time paid upon their importation; and it seems at that time to have been the object of the legislature to give somewhat more than ordinary encouragement to the carrying trade a wine. Several of the other duties, too

ever be much respected; and they probably at all times found means of bringing back some cargo from the countries to which they were allowed to carry out one. They seem, however, to have found some difficulty in importing European wines from the places of their growth; and they could not well import them from Great Britain, where they were loaded with many heavy duties, of which a considerable part was not drawn back upon exportation. Madeira wine, not being an European commodity, could be imported directly into America and the West Indies, countries which, in all their non-enumerated commodities, enjoyed a free trade to the island of Madeira. These circumstances had probably introduced that general taste for Ma deira wine, which our officers found established in all our colonies at the commence

ment of the war which began in 1755, and were always drawn back upon exportation. which they brought back with them to the The revenue of excise would, in this case inmother country, where that wine had not been deed, suffer a little, and that of the customs a much in fashion before. Upon the conclu- good deal more; but the natural balance of sion of that war, in 1763 (by the 4th Geo. III, industry, the natural division and distribution chap. 15, sect. 12), all the duties except L.3, of labour, which is always more or less dis10s. were allowed to be drawn back upon the turbed by such duties, would be more nearly exportation to the colonies of all wines, ex- re-established by such a regulation. cept French wines, to the commerce and consumption of which national prejudice would allow no sort of encouragement. The period between the granting of this indulgence and the revolt of our North American colonies, was probably too short to admit of any considerable change in the customs of those coun

tries.

These reasons, however, will justify drawbacks only upon exporting goods to those countries which are altogether foreign and independent, not to those in which our merchants and manufacturers enjoy a monopoly. A drawback, for example, upon the exportation of European goods to our American colonies, will not always occasion a greater exThe same act which, in the drawbacks upon portation than what would have taken place all wines, except French wines, thus favoured without it. By means of the monopoly which the colonies so much more than other coun- our merchants and manufacturers enjoy there, tries, in those upon the greater part of other the same quantity might frequently, perhaps, commodities, favoured them much less. Up- be sent thither, though the whole duties were on the exportation of the greater part of com- retained. The drawback, therefore, may fremodities to other countries, half the old sub- quently be pure loss to the revenue of excise sidy was drawn back. But this law enacted, and customs, without altering the state of the that no part of that duty should be drawn trade, or rendering it in any respect more exback upon the exportation to the colonies of tensive. How far such drawbacks can be jusany commodities of the growth or manufac-tified as a proper encouragement to the industure either of Europe or the East Indies, ex-try of our colonies, or how far it is advancept wines, white calicoes, and muslins.

tageous to the mother country that they should be exempted from taxes which are paid by all the rest of their fellow-subjects, will ap pear hereafter, when I come to treat of colonies.

Drawbacks were, perhaps, originally granted for the encouragement of the carrying trade, which, as the freight of the ship is frequently paid by foreigners in money, was supposed to be peculiarly fitted for bringing gold and sil- Drawbacks, however, it must always be unver into the country. But though the carry-derstood, are useful only in those cases in ing trade certainly deserves no peculiar en- which the goods, for the exportation of which couragement, though the motive of the insti- they are given, are really exported to some tution was, perhaps, abundantly foolish, the foreign country, and not clandestinely re-iminstitution itself seems reasonable enough. ported into our own. That some drawbacks, Such drawbacks cannot force into this trade a particularly those upon tobacco, have fregreater share of the capital of the country than quently been abused in this manner, and have what would have gone to it of its own ac-given occasion to many frauds, equally hurtcord, had there been no duties upon importa- ful both to the revenue and to the fair trader tion; they only prevent its being excluded is well known. Note 30.

altogether by those duties. The carrying trade, though it deserves no preference, ought not to be precluded, but to be left free, like all other trades. It is a necessary resource to those capitals which cannot find employment, either in the agriculture or in the manufactures of the country, either in its home trade, or in its foreign trade of consumption.

The revenue of the customs, instead of suffering, profits from such drawbacks, by that part of the duty which is retained. If the whole duties had been retained, the foreign goods upon which they are paid could seldom have been exported, nor consequently imported, for want of a market. The duties, therefore, of which a part is retained, would never have been paid.

CHAP. V.

OF BOUNTIES.

BOUNTIES upon exportation are, in Great Britain, frequently petitioned for, and sometimes granted, to the produce of particular branches of domestic industry. By means of them, our merchants and manufacturers, it is pretended, will be enabled to sell their goods as cheap or cheaper than their rivals in the foreign market. A greater quantity, it is said, will thus These reasons seem sufficiently to justify be exported, and the balance of trade conse. drawbacks, and would justify them, though quently turned more in favour of our own the whole duties, whether upon the produce country. We cannot give our workmen a moof domestic industry or upon foreign goods, inopoly in the foreign, as we have done in the