That bounties upon exportation have been The herrings caught and cured at sea are abused, to many fraudulent purposes, is very called sea-sticks. In order to render them well known. But it is not the interest of what are called merchantable herrings, it is merchants and manufacturers, the great in-necessary to repack them with an additional ventors of all these expedients, that the home quantity of salt; and in this case, it is reckmarket should be overstocked with their goods; oned, that three barrels of sea-sticks are usuan event which a bounty upon production ally repacked into two barrels of merchantable might sometimes occasion. A bounty upon herrings. The number of barrels of merexportation, by enabling them to send abroad chantable herrings, therefore, caught during their surplus part, and to keep up the price of these eleven years, will amount only, according what remains in the home market, effectually to this account, to 252,2314. During these eleprevents this. Of all the expedients of the ven years, the tonnage bounties paid amounted mercantile system, accordingly, it is the one to L. 155,463: 1!s. or 8s. 2 d. upon every of which they are the fondest. I have known barrel of sea-sticks, and to 12s. sid. upon the different undertakers of some particular every barrel of merchantable herrings. works agree privately among themselves to The salt with which these herrings are cured give a bounty out of their own pockets upon is sometimes Scotch, and sometimes foreign the exportation of a certain proportion of the salt; both which are delivered, free of all exgoods which they dealt in. This expedient cise duty, to the fish-curers. The excise duty succeeded so well, that it more than doubled upon Scotch salt is at present 1s. 6d., that the price of their goods in the home market, upon foreign salt 10s. the bushel. A barrel notwithstanding a very considerable increase of herrings is supposed to require about one in the produce. The operation of the bounty bushel and one-fourth of a bushel foreign upon corn must have been wonderfully dif- salt. Two bushels are the supposed average ferent, if it has lowered the money price of of Scotch salt. If the herrings are entered that commodity.

for exportation, no part of this duty is paid up; if entered for home consumption, whether the herrings were cured with foreign or with Scotch salt, only one shilling the barrel It was the old Scotch duty upon

Something like a bounty upon production, however, has been granted upon some particular occasions. The tonnage bounties given to the white herring and whale fisheries may, is paid up. perhaps, be considered as somewhat of this a bushel of salt, the quantity which, at a low nature. They tend directly, it may be supposed, to render the goods cheaper in the home market than they otherwise would be. In other respects, their effects, it must be acknowledged, are the same as those of bounties upon exportation. By means of them, a part of the capital of the country is employed in bringing goods to market, of which the price does not repay the cost, together with the ordinary profits of stock.

estimation, had been supposed necessary for curing a barrel of herrings. In Scotland, foreign salt is very little used for any other purpose but the curing of fish. But from the 5th April 1771 to the 5th April 1782, the quantity of foreign salt imported amounted to 936,974 bushels, at eighty-four pounds the bushel; the quantity of Scotch salt delivered from the works to the fish-curers, to no more than 168,226, at fifty-six pounds the bushel But though the tonnage bounties to those only. It would appear, therefore, that it is fisheries do not contribute to the opulence of principally foreign salt that is used in the fishthe nation, it may, perhaps, be thought that eries. Upon every barrel of herrings exported, they contribute to its defence, by augmenting there is, besides, a bounty of 2s. 8d. and more the number of its sailors and shipping. This, than two-thirds of the buss-caught herrings it may be alleged, may sometimes be done are exported. Put all these things together, by means of such bounties, at a much smaller and you will find that, during these eleven expense than by keeping up a great standing years, every barrel of buss-caught herrings, navy, if I may use such an expression, in the cured with Scotch salt, when exported, has same way as a standing army.

Notwithstanding these favourable allegations, however, the following considerations dispose me to believe, that in granting at least one of these bounties, the legislature has been very grossly imposed upon :

cost government 17s. 113d.; and, when entered for home consumption, 14s. 33d.; and that every barrel cured with foreign salt, when exported, has cost government L.1: 7: 5 d.; and, when entered for home consumption, L.1: 3: 93d. The price of a barrel of good First, The herring-buss bounty seems too merchantable herrings runs from seventeen large. and eighteen to four and five-and-twenty shil From the commencement of the winter fish-lings; about a guinea at an average. ✩ ing 1771, to the end of the winter fishing Secondly, The bounty to the white-herring 1781, the tonnage bounty upon the herring- fishery is a tonnage bounty, and is propor buss fishery has been at thirty shillings the tioned to the burden of the ship, not to her dili. ton. During these eleven years, the whole gence or success in the fishery; and it has, 】 number of barrels caught by the herring-buss| fishery of Scotland amounted to 378,347.

See the accounts at the end of this Book

am afraid, been too common for the vessels to buss bounty contributes to no such good pur. fit out for the sole purpose of catching, not pose. It has ruined the boat-fishery, which is the fish, but the bounty. In the year 1759, by far the best adapted for the supply of the when the bounty was at fifty shillings the ton, home market; and the additional bounty of the whole buss fishery of Scotland brought 2s. 8d. the barrel upon exportation, carries in only four barrels of sea-sticks. In that the greater part, more than two-thirds, of the year, each barrel of sea-sticks cost govern-produce of the buss-fishery abroad. Between ment, in bounties alone, L.113: 15s.; each thirty and forty years ago, before the establish barrel of merchantable herrings L. 159: 7: 6. ment of the buss-bounty, 16s. the barrel, 1 Thirdly, The mode of fishing, for which have been assured, was the common price of this tonnage bounty in the white herring fish-white herrings. Between ten and fifteen years ery has been given (by busses or decked ves-ago, before the boat-fishery was entirely ruin. sels from twenty to eighty tons burden), seems ed, the price was said to have run from sevennot so well adapted to the situation of Scot-teen to twenty shillings the barrel. For these land, as to that of Holland, from the practice last five years, it has, at an average, been at of which country it appears to have been bor-twenty-five shillings the barrel. This high rowed. Holland lies at a great distance from price, however, may have been owing to the the seas to which herrings are known prin-real scarcity of the herrings upon the coast of cipally to resort, and can, therefore, carry on Scotland. I must observe, too, that the cask that fishery only in decked vessels, which can or barrel, which is usually sold with the hercarry water and provisions sufficient for a rings, and of which the price is included in voyage to a distant sea; but the Hebrides, or all the foregoing prices, has, since the comWestern Islands, the islands of Shetland, and mencement of the American war, risen to the northern and north-western coasts of Scot-about double its former price, or from about I must likewise observe, land, the countries in whose neighbourhood Ss. to about 6s. the herring fishery is principally carried on, that the accounts I have received of the prices are everywhere intersected by arms of the sea, of former times, have been by no means quite which run up a considerable way into the uniform and consistent, and an old man of land, and which, in the language of the coun- great accuracy and experience has assured me, try, are called sea-lochs. It is to these sea-that, more than fifty years ago, a guinea was lochs that the herrings principally resort dur-the usual price of a barrel of good merchanting the seasons in which they visit those seas; able herrings; and this, I imagine, may still for the visits of this, and, I am assured, of be looked upon as the average price. All ac many other sorts of fish, are not quite regular counts, however, I think, agree that the price and constant. A boat-fishery, therefore, seems has not been lowered in the home market to be the mode of fishing best adapted to the consequence of the buss-bounty. peculiar situation of Scotland, the fishers car- When the undertakers of fisheries, after rying the herrings on shore as fast as they are such liberal bounties have been bestowed upon taken, to be either cured or consumed fresh. them, continue to sell their commodity at the But the great encouragement which a bounty same, or even at a higher price than they were of 30s. the ton gives to the buss-fishery, is accustomed to do before, it might be expected necessarily a discouragement to the boat-fish- that their profits should be very great; and it ery, which, having no such bounty, cannot is not improbable that those of some indivi bring its cured fish to market upon the same duals may have been so. In general, how. terms as the buss-fishery. The boat-fishery, ever, I have every reason to believe they have accordingly, which, before the establishment been quite otherwise. of the buss-bounty, was very considerable, and such bounties is, to encourage rash underis said to have employed a number of seamen, takers to adventure in a business which they not inferior to what the buss-fishery employs do not understand; and what they lose by at present, is now gone almost entirely to their own negligence and ignorance, more decay. Of the former extent, however, of this than compensates all that they can gain by now ruined and abandoned fishery, I must the utmost liberality of government. In 1750, acknowledge that I cannot pretend to speak by the same act which first gave the bounty with much precision. As no bounty was paid of 30s. the ton for the encouragement of the upon the outfit of the boat-fishery, no account white herring fishery (the 23d Geo. II. chap. was taken of it by the officers of the customs 24), a joint stock company was erected, with a capital of L. 500,000, to which the subscribFourthly, In many parts of Scotland, dur-ers (over and above all other encouragements, ing certain seasons of the year, herrings make the tonnage bounty just now mentioned, the no inconsiderable part of the food of the com. exportation bounty of 2s. 8d. the barrel, the mon people. A bounty which tended to lower delivery of both British and foreign salt duty their price in the home market, might contri- free) were, during the space of fourteen years, bute a good deal to the relief of a great num- for every hundred pounds which they subber of our fellow-subjects, whose circumstances scribed and paid into the stock of the society, are by no means affluent. But the herring-entitled to three pounds a-year, to be paid by

or salt duties.

The usual effect of

the receiver-general of the customs in equal so altered by manufacture of any kind as to half-yearly payments. Besides this great com- come under a new denomination, they are pany, the residence of whose governor and called bounties. directors was to be in London, it was declared Premiums given by the public to artists lawful to erect different fishing chambers in and manufacturers, who excel in their parti all the different out-ports of the kingdom, cular occupations, are not liable to the same provided a sum not less than L. 10,000 was objections as bounties. By encouraging exsubscribed into the capital of each, to be ma-traordinary dexterity and ingenuity, they serve naged at its own risk, and for its own profit to keep up the emulation of the workmen acand loss. The same annuity, and the same tually employed in those respective occupaencouragements of all kinds, were given to tions, and are not considerable enough to the trade of those inferior chambers as to that turn towards any one of them a greater share of the great company. The subscription of of the capital of the country than what would the great company was soon filled up, and se- go to it of its own accord. Their tendency veral different fishing chambers were erected is not to overturn the natural balance of emin the different out-ports of the kingdom. In ployments, but to render the work which is spite of all these encouragements, almost all done in each as perfect and complete as posthose different companies, both great and sible. The expense of premiums, besides, is small, lost either the whole or the greater very trifling, that of bounties very great. The part of their capitals; scarce a vestige now bounty upon corn alone has sometimes cost remains of any of them, and the white-herring the public, in one year, more than L.300,000. fishery is now entirely, or almost entirely, carried on by private adventurers.

If any particular manufacture was necessary, indeed, for the defence of the society, it might not always be prudent to depend upon our neighbours for the supply; and if such manufacture could not otherwise be supported

Bounties are sometimes called premiums, as drawbacks are sometimes called bounties. But we must, in all cases, attend to the na. ture of the thing, without paying any regard to the word. Note 31.

Corn Laws.

at home, it might not be unreasonable that all Digression concerning the Corn Trade and the other branches of industry should be taxed in order to support it. The bounties upon the exportation of British made sail-cloth, and British made gunpowder, may, perhaps, both be vindicated upon this principle.

I cannot conclude this chapter concerning bounties, without observing, that the praises which have been bestowed upon the law which But though it can very seldom be reason- establishes the bounty upon the exportation of able to tax the industry of the great body of corn, and upon that system of regulations the people, in order to support that of some which is connected with it, are altogether unparticular class of manufacturers; yet, in the merited. A particular examination of the na wantonness of great prosperity, when the pub-ture of the corn trade, and of the principal lic enjoys a greater revenue than it knows British laws which relate to it, will sufficiently well what to do with, to give such bounties demonstrate the truth of this assertion. to favourite manufactures, may, perhaps, be great importance of this subject must justify as natural as to incur any other idle expense. the length of the digression. In public, as well as in private expenses, great wealth, may, perhaps, frequently be admitted as an apology for great folly. But there must surely be something more than ordinary absurdity in continuing such profusion in times of general difficulty and distress.

The

The trade of the corn merchant is composed of four different branches, which, though they may sometimes be all carried on by the same person, are, in their own nature, four separate and distinct trades. These are, first, the trade of the inland dealer; secondly, that of What is called a bounty, is sometimes no the merchant-importer for home consuraption; more than a drawback, and, consequently, is thirdly, that of the merchant-exporter of home not liable to the same objections as what is produce for foreign consumption; and, fourth properly a bounty. The bounty, for example, ly, that of the merchant-carrier, or of the imupon refined sugar exported, may be consi- porter of corn, in order to export it again. dered as a drawback of the duties upon the I. The interest of the inland dealer, and brown and Muscovado sugars, from which it that of the great body of the people, how op is made; the bounty upon wrought silk ex- posite soever they may at first appear, are, ported, a drawback of the duties upon raw and even in years of the greatest scarcity, exactly thrown silk imported; the bounty upon gun- the same. It is his interest to raise the price powder exported, a drawback of the duties of his corn as high as the real scarcity of the upon brimstone and saltpetre imported. In season requires, and it can never be his intethe language of the customs, those allowances rest to raise it higher. By raising the price, only are called drawbacks which are given he discourages the consumption, and puts upon goods exported in the same form in which every body more or less, but particularly the they are imported. When that form has been inferior ranks of people, upon thrift and good

management. If, by raising it too high, he Were it possible, indeed, for one great comdiscourages the consumption so much that the pany of merchants to possess themselves of supply of the season is likely to go beyond the the whole crop of an extensive country, it consumption of the season, and to last for some might perhaps be their interest to deal with time after the next crop begins to come in, he it, as the Dutch are said to do with the spi runs the hazard, not only of losing a consi- ceries of the Moluccas, to destroy or throw derable part of his corn by natural causes, but away a considerable part of it, in order to of being obliged to sell what remains of it keep up the price of the rest. But it is scarce for much less than what he might have had possible, even by the violence of law, to estafor it several months before. If, by not rais-blish such an extensive monopoly with regard ing the price high enough, he discourages to corn; and wherever the law leaves the trade the consumption so little, that the supply of free, it is of all commodities the least liable to the season is likely to fall short of the con- be engrossed or monopolized by the force of sumption of the season, he not only loses a a few large capitals, which buy up the greater part of the profit which he might otherwise part of it. Not only its value far exceeds what have made, but he exposes the people to suf- the capitals of a few private men are capable fer before the end of the season, instead of of purchasing; but, supposing they were cahe hardships of a dearth, the dreadful horrors pable of purchasing it, the manner in which of a famine. It is the interest of the people it is produced renders this purchase altoge that their daily, weekly, and monthly con- ther impracticable. As, in every civilized sumption should be proportioned as exactly country, it is the commodity of which the anas possible to the supply of the season. The nual consumption is the greatest; so a greater interest of the inland corn dealer is the same. quantity of industry is annually employed in By supplying them, as nearly as he can judge, producing corn than in producing any other in this proportion, he is likely to sell all his commodity. When it first comes from the corn for the highest price, and with the great-ground, too, it is necessarily divided among a est profit; and his knowledge of the state of greater number of owners than any other comthe crop, and of his daily, weekly, and monthly modity; and these owners can never be colsales, enables him to judge, with more or less lected into one place, like a number of indeaccuracy, how far they really are supplied in pendent manufacturers, but are necessarily this manner. Without intending the interest scattered through all the different corners of of the people, he is necessarily led, by a re- the country. These first owners either imgard to his own interest, to treat them, even mediately supply the consumers in their own in years of scarcity, pretty much in the same neighbourhood, or they supply other inland manner as the prudent master of a vessel is dealers, who supply those consumers. sometimes obliged to treat his crew. When inland dealers in corn, therefore, including he foresees that provisions are likely to run both the farmer and the baker, are necessarily short, he puts them upon short allowance. more numerous than the dealers in any other Though from excess of caution he should commodity; and their dispersed situation rensometimes do this without any real necessity, ders it altogether impossible for them to enter yet all the inconveniencies which his crew can into any general combination. If, in a year thereby suffer are inconsiderable, in compari- of scarcity, therefore, any of them should find son of the danger, misery, and ruin, to which that he had a good deal more corn upon hand they might sometimes be exposed by a less than, at the current price, he could hope to provident conduct. Though, from excess of dispose of before the end of the season, he avarice, in the same manner, the inland corn would never think of keeping up this price to merchant should sometimes raise the price of his own loss, and to the sole benefit of his his corn somewhat higher than the scarcity of rivals and competitors, but would unmedi. the season requires, yet all the inconveniencies ately lower it, in order to get rid of his corn which the people can suffer from this conduct, before the new crop began to come in. The which effectually secures them from a famine same motives, the same interests, which would in the end of the season, are inconsiderable, thus regulate the conduct of any one dealer, in comparison of what they might have been would regulate that of every other, and ob exposed to by a more liberal way of dealing lige them all in general to sell their corn at in the beginning of it The corn merchant the price which, according to the best of their himself is likely to suffer the most by this ex- judgment, was most suitable to the scarcity or cess of avarice; not only from the indigna- plenty of the season. tion which it generally excites against him, but, though he should escape the effects of this indignation, from the quantity of corn which it necessarily leaves upon his hands in the end of the season, and which, if the next season happens to prove favourable, he must always sell for a much lower price than he might otherwise have had.

The

Whoever examines, with attention, the history of the dearths and famines which have afflicted any part of Europe during either the course of the present or that of the two pre ceding centuries, of several of which we have pretty exact accounts, will find, I believe, that a dearth never has arisen from any combina tion among the inland dealers in corn, not

from any other cause but a real scarcity, oc- In years of scarcity, the inferior ranks of casioned sometimes, perhaps, and in some par- people impute their distress to the avarice of ticular places, by the waste of war, but in by the corn merchant, who becomes the object of far the greatest number of cases by the fault their hatred and indignation. Instead of makof the seasons; and that a famine has never ing profit upon such occasions, therefore, he arisen from any other cause but the violence is often in danger of being utterly ruined, of government attempting, by improper means, and of having his magazines plundered and to remedy the inconveniencies of a dearth. destroyed by their violence. It is in years of In an extensive corn country, between all scarcity, however, when prices are high, that the different parts of which there is a free the corn merchant expects to make his principal commerce and communication, the scarcity profit. He is generally in contract with some occasioned by the most unfavourable seasons farmers to furnish him, for a certain number can never be so great as to produce a famine; of years, with a certain quantity of corn, at a and the scantiest crop, if managed with fru- certain price. This contract price is settled gality and economy, will maintain, through according to what is supposed to be the mothe year, the same number of people that are derate and reasonable, that is, the ordinary or commonly fed in a more affluent manner by average price, which, before the late years of one of moderate plenty. The seasons most scarcity, was commonly about 28s. for the unfavourable to the crop are those of exces- quarter of wheat, and for that of other grain sive drought or excessive rain. But as corn in proportion. In years of scarcity, therefore, grows equally upon high and low lands, upon the corn merchant buys a great part of his corn grounds that are disposed to be too wet, and for the ordinary price, and sells it for a much upon those that are disposed to be too dry, higher. That this extraordinary profit, howeither the drought or the rain, which is hurt- ever, is no more than sufficient to put his ful to one part of the country, is favourable trade upon a fair level with other trades, and to another; and though, both in the wet and to compensate the many losses which he susin the dry season, the crop is a good deal less tains upon other occasions, both from the pethan in one more properly tempered; yet, in rishable nature of the commodity itself, and both, what is lost in one part of the country from the frequent and unforeseen fluctuations is in some measure compensated by what is of its price, seems evident enough, from this gained in the other. In rice countries, where single circumstance, that great fortunes are as the crop not only requires a very moist soil, seldom made in this as in any other trade. but where, in a certain period of its growing, The popular odium, however, which attends it must be laid under water, the effects of a it in years of scarcity, the only years in which drought are much more dismal. Even in such it can be very profitable, renders people of chacountries, however, the drought is, perhaps, racter and fortune averse to enter into it. It scarce ever so universal as necessarily to occa- is abandoned to an inferior set of dealers; sion a famine, if the government would allow and millers, bakers, meal-men, and meal-faca free trade. The drought in Bengal, a few tors,together with a number of wretched huckyears ago, might probably have occasioned a sters, are almost the only middle people that, very great dearth. Some improper regulations, in the home market, come between the grower some injudicious restraints, imposed by the and the consumer. servants of the East India Company upon the rice trade, contributed, perhaps, to turn that dearth into a famine.

The ancient policy of Europe, instead of discountenancing this popular odium against a trade so beneficial to the public, seems, on the contrary, to have authorised and encouraged it.

When the government, in order to remedy the inconveniencies of a dearth, orders all the dealers to sell their corn at what it supposes a By the 5th and 6th of Edward VI. cap. 14, reasonable price, it either hinders them from it was enacted, that whoever should buy any bringing it to market, which may sometimes corn or grain, with intent to sell it again, produce a famine even in the beginning of the should be reputed an unlawful engrosser, and season; or, if they bring it thither, it enables should, for the first fault, suffer two months the people, and thereby encourages them to imprisonment, and forfeit the value of the consume it so fast as must necessarily produce corn; for the second, suffer six months impri a famine before the end of the season. The sonment, and forfeit double the value; and, unlimited, unrestrained freedom of the corn for the third, be set in the pillory, suffer imtrade, as it is the only effectual preventive of the miseries of a famine, so it is the best palliative of the inconveniencies of a dearth; for the inconveniencies of a real scarcity cannot be remedied; they can only be palliated. No trade deserves more the full protection of the law, and no trade requires it so much; because no trade is so much exposed to popular odium.

prisonment during the king's pleasure, and forfeit all his goods and chattels. The ancient policy of most other parts of Europe was no better than that of England.

Our ancestors seem to have imagined, that the people would buy their corn cheaper of the farmer than of the corn merchant, who, they were afraid, would require, over and above the price which he paid to the farmer.