The importation of the materials of manufacture has sometimes
been encouraged by an exemption from the duties to which other
goods are subject, and sometimes by bounties.
The importation of sheep's wool from several different countries,
of cotton wool from all countries, of undressed flax, of the
greater part of dyeing drugs, of the greater part of undressed
hides from Ireland or the British colonies, of sealskins from
the British Greenland fishery, of pig and bar iron from the
British colonies, as well as of several other materials of
manufacture, has been encouraged by an exemption from all duties,
if properly entered at the custom house. The private interest
of our merchants and manufacturers may, perhaps, have extorted
from the legislature these exemptions as well as the greater
part of our other commercial regulations. They are, however,
perfectly just and reasonable, and if, consistently with the
necessities of the state, they could be extended to all the
other materials of manufacture, the public would certainly
be a gainer.
The avidity of our great manufacturers, however, has in some
cases extended these exemptions a good deal beyond what can
justly be considered as the rude materials of their work. By
the 24th George III, c. 46, a small duty of only one penny
the pound was imposed upon the importation of foreign brown
linen yam, instead of much higher duties to which it had been
subjected before, viz. of sixpence the pound upon sail yarn,
of one shilling the pound upon all French and Dutch yarn, and
of two pounds thirteen shillings and fourpence upon the hundredweight
of all spruce or Muscovia yarn. But our manufacturers were
not long satisfied with this reduction. By the 29th of the
same king, c. 15, the same law which gave a bounty upon the
exportation of British and Irish linen of which the price did
not exceed eighteenpence the yard, even this small duty upon
the importation of brown linen yarn was taken away. In the
different operations, however, which are necessary for the
preparation of linen yarn, a good deal more industry is employed
than in the subsequent operation of preparing linen cloth from
linen yarn. To say nothing of the industry of the flax-growers
and flax-dressers, three or four spinners, at least, are necessary
in order to keep one weaver in constant employment; and more
than four-fifths of the whole quantity of labour necessary
for the preparation of linen cloth is employed in that of linen
yarn; but our spinners are poor people, women commonly scattered
about in all different parts of the country, without support
or protection. It is not by the sale of their work, but by
that of the complete work of the weavers, that our great master
manufacturers make their profits. As it is their interest to
sell the complete manufacture as dear, so is it to buy the
materials as cheap as possible. By extorting from the legislature
bounties upon the exportation of their own linen, high duties
upon the importation of all foreign linen, and a total prohibition
of the home consumption of some sorts of French linen, they
endeavour to sell their own goods as dear as possible. By encouraging
the importation of foreign linen yarn, and thereby bringing
it into competition with that which is made by our own people,
they endeavour to buy the work of the poor spinners as cheap
as possible. They are as intent to keep down the wages of their
own weavers as the earnings of the poor spinners, and it is
by no means for the benefit of the workman that they endeavour
either to raise the price of the complete work or to lower
that of the rude materials. It is the industry which is carried
on for the benefit of the rich and the powerful that is principally
encouraged by our mercantile system. That which is carried
on for the benefit of the poor and the indigent is too often
either neglected or oppressed.
Both the bounty upon the exportation of linen, and the exemption
from duty upon the importation of foreign yarn, which were
granted only for fifteen years, but continued by two different
prolongations, expire with the end of the session of Parliament
which shall immediately follow the 24th of June 1786.
The encouragement given to the importation of the materials
of manufacture by bounties has been principally confined to
such as were imported from our American plantations.
The first bounties of this kind were those granted about the
beginning of the present century upon the importation of naval
stores from America. Under this denomination were comprehended
timber fit for masts, yards, and bowsprits; hemp; tar, pitch,
and turpentine. The bounty, however, of one pound the ton upon
masting-timber, and that of six pounds the ton upon hemp, were
extended to such as should be imported into England from Scotland.
Both these bounties continued without any variation, at the
same rate, till they were severally allowed to expire; that
upon hemp on the 1st of January 1741, and that upon masting-timber
at the end of the session of Parliament immediately following
the 24th June 1781.
The bounties upon the importation of tar, pitch, and turpentine
underwent, during their continuance, several alterations. Originally
that upon tar was four pounds the ton; that upon pitch the
same; and that upon turpentine, three pounds the ton. The bounty
of four pounds the ton upon tar was afterwards confined to
such as had been prepared in a particular manner; that upon
other good, clean, and merchantable tar was reduced to two
pounds four shillings the ton. The bounty upon pitch was likewise
reduced to one pound; and that upon turpentine to one pound
ten shillings the ton.
The second bounty upon the importation of any of the materials
of manufacture, according to the order of time, was that granted
by the 21st George II, c. 30, upon the importation of indigo
from the British plantations. When the plantation indigo was
worth three-fourths of the price of the best French indigo,
it was by this act entitled to a bounty of sixpence the pound.
This bounty, which, like most others, was granted only for
a limited time, was continued by several prolongations, but
was reduced to fourpence the pound. It was allowed to expire
with the end of the session of Parliament which followed the
25th March 1781.
The third bounty of this kind was that granted (much about
the time that we were beginning sometimes to court and sometimes
to quarrel with our American colonies) by the 4th George III,
c. 26, upon the importation of hemp, or undressed flax, from
the British plantations. This bounty was granted for twenty-one
years, from the 24th June 1764 to the 24th June 1785. For the
first seven years it was to be at the rate of eight pounds
the ton, for the second at six pounds, and for the third at
four pounds. It was not extended to Scotland, of which the
climate (although hemp is sometimes raised there in small quantities
and of an inferior quality) is not very fit for that produce.
Such a bounty upon the importation of Scotch flax into England
would have been too great a discouragement to the native produce
of the southern part of the United Kingdom.
The fourth bounty of this kind was that granted by the 5th
George III, c. 45, upon the importation of wood from America.
It was granted for nine years, from the 1st January 1766 to
the 1st January 1775. During the first three years, it was
to be for every hundred and twenty good deals, at the rate
of one pound, and for every load containing fifty cubic feet
of other squared timber at the rate of twelve shillings. For
the second three years, it was for deals to be at. the rate
of fifteen shillings, and for other squared timber at the rate
of eight shillings; and for the third three years, it was for
deals to be at the rate of ten shillings, and for other squared
timber at the rate of five shillings.
The fifth bounty of this kind was that granted by the 9th
George III, c. 38, upon the importation of raw silk from the
British plantations. It was granted for twenty-one years, from
the 1st January 1770 to the 1st January 1791. For the first
seven years it was to be at the rate of twenty-five pounds
for every hundred pounds value; for the second at twenty pounds;
and for the third at fifteen pounds. The management of the
silk worm, and the preparation of silk, requires so much hand
labour, and labour is so very dear in America that even this
great bounty, I have been informed, was not likely to produce
any considerable effect.
The sixth bounty of this kind was that granted by 2nd George
III, c. 50, for the importation of pipe, hogshead, and barrel
staves and heading from the British plantations. It was granted
for nine years, from 1st January 1772 to the 1st January 1781.
For the first three years it was for a certain quantity of
each to be at the rate of six pounds; for the second three
years at four pounds; and for the third three years at two
pounds.
The seventh and last bounty of this kind was that granted
by the 19th George III, c. 37, upon the importation of hemp
from Ireland. It was granted in the same manner as that for
the importation of hemp and undressed flax from America, for
twenty-one years, from the 24th June 1779 to the 24th June
1800. This term is divided, likewise, into three periods of
seven years each; and in each of those periods the rate of
the Irish bounty is the same with that of the American. It
does not, however, like the American bounty, extend to the
importation of undressed flax. It would have been too great
a discouragement to the cultivation of that plant in Great
Britain. When this last bounty was granted, the British and
Irish legislatures were not in much better humour with one
another than the British and American had been before. But
this boon to Ireland, it is to be hoped, has been granted under
more fortunate auspices than all those to America.
The same commodities upon which we thus gave bounties when
imported from America were subjected to considerable duties
when imported from any other country. The interest of our American
colonies was regarded as the same with that of the mother country.
Their wealth was considered as our wealth. Whatever money was
sent out to them, it was said, came all back to us by the balance
of trade, and we could never become a farthing the poorer by
any expense which we could lay out upon them. They were our
own in every respect, and it was an expense laid out upon the
improvement of our own property and for the profitable employment
of our own people. It is unnecessary, I apprehend, at present
to say anything further in order to expose the folly of a system
which fatal experience has now sufficiently exposed. Had our
American colonies really been a part of Great Britain, those
bounties might have been considered as bounties upon production,
and would still have been liable to all the objections to which
such bounties are liable, but to no other.
The exportation of the materials of manufacture is sometimes
discouraged by absolute prohibitions, and sometimes by high
duties.
Our woollen manufacturers have been more successful than any
other class of workmen in persuading the legislature that the
prosperity of the nation depended upon the success and extension
of their particular business. They have not only obtained a
monopoly against the consumers by an absolute prohibition of
importing woollen cloths from any foreign country, but they
have likewise obtained another monopoly against the sheep farmers
and growers of wool by a similar prohibition of the exportation
of live sheep and wool. The severity of many of the laws which
have been enacted for the security of the revenue is very justly
complained of, as imposing heavy penalties upon actions which,
antecedent to the statutes that declared them to be crimes,
had always been understood to be innocent. But the cruellest
of our revenue laws, I will venture to affirm, are mild and
gentle in comparison of some of those which the clamour of
our merchants and manufacturers has extorted from the legislature
for the support of their own absurd and oppressive monopolies.
Like the laws of Draco, these laws may be said to be all written
in blood.
By the 8th of Elizabeth, c. 3, the exporter of sheep, lambs,
or rams was for the first offence to forfeit all his goods
for ever, to suffer a year's imprisonment, and then to have
his left hand cut off in a market town upon a market day, to
be there nailed up; and for the second offence to be adjudged
a felon, and to suffer death accordingly. To prevent the breed
of our sheep from being propagated in foreign countries seems
to have been the object of this law. By the 13th and 14th of
Charles II, c. 18, the exportation of wool was made felony,
and the exporter subjected to the same penalties and forfeitures
as a felon.
For the honour of the national humanity, it is to be hoped
that neither of these statutes were ever executed. The first
of them, however; so far as I know, has never been directly
repealed, and Serjeant Hawkins seems to consider it as still
in force. It may however, perhaps, be considered as virtually
repealed by the 12th of Charles II, c. 32, sect. 3, which,
without expressly taking away the penalties imposed by former
statutes, imposes a new penalty, viz., that of twenty shillings
for every sheep exported, or attempted to be exported, together
with the forfeiture of the sheep and of the owner's share
of the ship. The second of them was expressly repealed by the
7th and 8th of William III, c. 28, sect. 4. By which it is
declared that, "Whereas the statute of the 13th and 14th
of King Charles II, made against the exportation of wool,
among
other things in the said act mentioned, doth enact the same
to be deemed felony; by the severity of which penalty the
prosecution of offenders hath not been so effectually put
in execution:
Be it, therefore, enacted by the authority aforesaid, that
so much of the said act, which relates to the making the
said offence felony, be repealed and made void."
The penalties, however, which are either imposed by this milder
statute, or which, though imposed by former statutes, are not
repealed by this one, are still sufficiently severe. Besides
the forfeiture of the goods, the exporter incurs the penalty
of three shillings for every pound weight of wool either exported
or attempted to be exported, that is about four or five times
the value. Any merchant or other person convicted of this offence
is disabled from requiring any debt or account belonging to
him from any factor or other person. Let his fortune be what
it will, whether he is or is not able to pay those heavy penalties,
the law means to ruin him completely. But as the morals of
the great body of the people are not yet so corrupt as those
of the contrivers of this statute, I have not heard that any
advantage has ever been taken of this clause. If the person
convicted of this offence is not able to pay the penalties
within three months after judgment, he is to be transported
for seven years, and if he returns before the expiration of
that term, he is liable to the pains of felony, without benefit
of clergy. The owner of the ship, knowing this offence, forfeits
all his interest in the ship and furniture. The master and
mariners, knowing this offence, forfeit all their goods and
chattels, and suffer three months' imprisonment. By a subsequent
statute the master suffers six months' imprisonment.
In order to prevent exportation, the whole inland commerce
of wool is laid under very burdensome and oppressive restrictions.
It cannot be packed in any box, barrel, cask, case, chest,
or any other package, but only in packs of leather or pack-cloth,
on which must be marked on the outside the words wool or yam,
in large letters not less than three inches long, on pain of
forfeiting the same and the package, and three shillings for
every pound weight, to be paid by the owner or packer. It cannot
be loaden on any horse or cart, or carried by land within five
miles of the coast, but between sun-rising and sun-setting,
on pain of forfeiting the same, the horses and carriages. The
hundred next adjoining to the sea-coast, out of or through
which the wool is carried or exported, forfeits twenty pounds,
if the wool is under the value of ten pounds; and if of greater
value, then treble that value, together with treble costs,
to be sued for within the year. The execution to be against
any two of the inhabitants, whom the sessions must reimburse,
by an assessment on the other inhabitants, as in the cases
of robbery. And if any person compounds with the hundred for
less than this penalty, he is to be imprisoned for five years;
and any other person may prosecute. These regulations take
place through the whole kingdom.
But in the particular counties of Kent and Sussex, the restrictions
are still more troublesome. Every owner of wool within ten
miles of the sea-coast must given an account in writing, three
days after shearing to the next officer of the customs, of
the number of his fleeces, and of the places where they are
lodged. And before he removes any part of them he must give
the like notice of the number and weight of the fleeces, and
of the name and abode of the person to whom they are sold,
and of the place to which it is intended they should be carried.
No person within fifteen miles of the sea, in the said counties,
can buy any wool before he enters into bond to the king that
no part of the wool which he shall so buy shall be sold by
him to any other person within fifteen miles of the sea. If
any wool is found carrying towards the sea-side in the said
counties, unless it has been entered and security given as
aforesaid, it is forfeited, and the offender also forfeits
three shillings for every pound weight. If any person lays
any wool not entered as aforesaid within fifteen miles of the
sea, it must be seized and forfeited; and if, after such seizure,
any person claim the same, he must give security to the Exchequer
that if he is cast upon trial he shall pay treble costs, besides
all other penalties.
When such restrictions are imposed upon the inland trade,
the coasting trade, we may believe, cannot be left very free.
Every owner of wool who carries or causes to be carried any
wool to any port or place on the seacoast, in order to be
from thence transported by sea to any other place or port on
the
coast, must first cause an entry thereof to be made at the
port from whence it is intended to be conveyed, containing
the weight, marks, and number of the packages, before he
brings the same within five miles of that port, on pain of
forfeiting
the same, and also the horses, carts, and other carriages;
and also of suffering and forfeiting as by the other laws
in force against the exportation of wool. This law, however
(1st
William III, c. 32), is so very indulgent as to declare that, "This
shall not hinder any person from carrying his wool home from
the place of shearing, though it be within five miles of the
sea, provided that in ten days after shearing, and before he
remove the wool, he do under his hand certify to the next officer
of the customs, the true number of fleeces, and where it is
housed; and do not remove the same, without certifying to such
officer, under his hand, his intention so to do, three days
before." Bond must be given that the wool to be carried coastways
is to be landed at the particular port for which it is entered
outwards; and if any part of it is landed without the presence
of an officer, not only the forfeiture of the wool is incurred
as in other goods, but the usual additional penalty of three
shillings for every pound weight is likewise incurred.
Our woollen manufactures, in order to justify their demand
of such extraordinary restrictions and regulations, confidently
asserted that English wool was of a peculiar quality, superior
to that of any other country; that the wool of other countries
could not, without some mixture of it, be wrought up into any
tolerable manufacture; that fine cloth could not be made without
it; that England, therefore, if the exportation of it could
be totally prevented, could monopolize to herself almost the
whole woollen trade of the world; and thus, having no rivals,
could sell at what price she pleased, and in a short time acquire
the most incredible degree of wealth by the most advantageous
balance of trade. This doctrine, like most other doctrines
which are confidently asserted by any considerable number of
people, was, and still continues to be, most implicitly believed
by a much greater number- by almost all those who are either
unacquainted with the woollen trade, or who have not made particular
inquiries. It is, however, so perfectly false that English
wool is in any respect necessary for the making of fine cloth
that it is altogether unfit for it. Fine cloth is made altogether
of Spanish wool. English wool cannot be even so mixed with
Spanish wool as to enter into the composition without spoiling
and degrading, in some degree, the fabric of the cloth.
It has been shown in the foregoing part of this work that
the effect of these regulations has been to depress the price
of English wool, not only below what it naturally would be
in the present times, but very much below what it actually
was in the time of Edward III. The price of Scots wool, when
in consequence of the union it became subject to the same regulations,
is said to have fallen about one half. It is observed by the
very accurate and intelligent author of the Memoirs of Wool,
the Reverend Mr. John Smith, that the price of the best English
wool in England is generally below what wool of a very inferior
quality commonly sells for in the market of Amsterdam. To depress
the price of this commodity below what may be called its natural
and proper price was the avowed purpose of those regulations;
and there seems to be no doubt of their having produced the
effect that was expected from them.
This reduction of price, it may perhaps be thought, by discouraging
the growing of wool, must have reduced very much the annual
produce of that commodity, though not below what it formerly
was, yet below what, in the present state of things, it probably
would have been, had it, in consequence of an open and free
market, been allowed to rise to the natural and proper price.
I am, however, disposed to believe that the quantity of the
annual produce cannot have been much, though it may perhaps
have been a little, affected by these regulations. The growing
of wool is not the chief purpose for which the sheep farmer
employs his industry and stock. He expects his profit not
so much from the price of the fleece as from that of the carcass;
and the average or ordinary price of the latter must even,
in many cases, make up to him whatever deficiency there may
be in the average or ordinary price of the former. It has
been
observed in the foregoing part of this work that, "Whatever
regulations tend to sink the price, either of wool or of raw
hides, below what it naturally would be, must, in an improved
and cultivated country, have some tendency to raise the price
of butcher's meat. The price both of the great and small cattle
which are fed on improved and cultivated land must be sufficient
to pay the rent which the landlord, and the profit which the
farmer has reason to expect from improved and cultivated land.
If it is not, they will soon cease to feed them. Whatever part
of this price, therefore, is not paid by the wool and the hide
must be paid by the carcass. The less there is paid for the
one, the more must be paid for the other. In what manner this
price is to be divided upon the different parts of the beast
is indifferent to the landlords and farmers, provided it is
all paid to them. In an improved and cultivated country, therefore,
their interest as landlords and farmers cannot be much affected
by such regulations, though their interest as consumers may
by the rise in the price of provisions." According to this
reasoning, therefore, this degradation in the price of wool
is not likely, in an improved and cultivated country, to
occasion any diminution in the annual produce of that commodity,
except
so far as, by raising the price of mutton, it may somewhat
diminish the demand for, and consequently the production
of, that particular species of butcher's meat. Its effect,
however,
even in this way, it is probable, is not very considerable.
But though its effect upon the quantity of the annual produce
may not have been very considerable, its effect upon the quality,
it may perhaps be thought, must necessarily have been very
great. The degradation in the quality of English wool, if not
below what it was in former times, yet below what it naturally
would have been in the present state of improvement and cultivation,
must have been, it may perhaps be supposed, very nearly in
proportion to the degradation of price. As the quality depends
upon the breed, upon the pasture, and upon the management and
cleanliness of the sheep, during the whole progress of the
growth of the fleece, the attention to these circumstances,
it may naturally enough be imagined, can never be greater than
in proportion to the recompense which the price of the fleece
is likely to make for the labour and expense which that attention
requires. It happens, however, that the goodness of the fleece
depends, in a great measure, upon the health, growth, and bulk
of the animal; the same attention which is necessary for the
improvement of the carcase is, in some respects, sufficient
for that of the fleece. Notwithstanding the degradation of
price, English wool is said to have been improved considerably
during the course even of the present century. The improvement
might perhaps have been greater if the price had been better;
but the lowness of price, though it may have obstructed, yet
certainly it has not altogether prevented that improvement.
The violence of these regulations, therefore, seems to have
affected neither the quantity nor the quality of the annual
produce of wool so much as it might have been expected to do
(though I think it probable that it may have affected the latter
a good deal more than the former); and the interest of the
growers of wool, though it must have been hurt in some degree,
seems, upon the whole, to have been much less hurt than could
well have been imagined.
These considerations, however, will not justify the absolute
prohibition of the exportation of wool. But they will fully
justify the imposition of a considerable tax upon that exportation.
To hurt in any degree the interest of any one order of citizens,
for no other purpose but to promote that of some other, is
evidently contrary to that justice and equality of treatment
which the sovereign owes to all the different orders of his
subjects. But the prohibition certainly hurts, in some degree,
the interest of the growers of wool, for no other purpose but
to promote that of the manufacturers.
Every different order of citizens is bound to contribute to
the support of the sovereign or commonwealth. A tax of five,
or even of ten shillings upon the exportation of every ton
of wool would produce a very considerable revenue to the sovereign.
It would hurt the interest of the growers somewhat less than
the prohibition, because it would not probably lower the price
of wool quite so much. It would afford a sufficient advantage
to the manufacturer, because, though he might not buy his wool
altogether so cheap as under the prohibition, he would still
buy it, at least, five or ten shillings cheaper than any foreign
manufacturer could buy it, besides saving the freight and insurance,
which the other would be obliged to pay. It is scarce possible
to devise a tax which could produce any considerable revenue
to the sovereign, and at the same time occasion so little inconveniency
to anybody.
The prohibition, notwithstanding all the penalties which guard
it, does not prevent the exportation of wool. It is exported,
it is well known, in great quantities. The great difference
between the price in the home and that in the foreign market
presents such a temptation to smuggling that all the rigour
of the law cannot prevent it. This illegal exportation is advantageous
to nobody but the smuggler. A legal exportation subject to
a tax, by affording a revenue to the sovereign, and thereby
saving the imposition of some other, perhaps, more burdensome
and inconvenient taxes might prove advantageous to all the
different subjects of the state.
The exportation of fuller's earth or fuller's clay, supposed
to be necessary for preparing and cleansing the woolen manufactures,
has been subjected to nearly the same penalties as the exportation
of wool. Even tobacco-pipe clay, though acknowledged to be
different from fuller's clay, yet, on account of their resemblance,
and because fuller's clay might sometimes be exported as tobacco-pipe
clay, has been laid under the same prohibitions and penalties.
By the 13th and 14th of Charles II, c. 7, the exportation,
not only of raw hides, but of tanned leather, except in the
shape of boots, shoes, or slippers, was prohibited; and the
law gave a monopoly to our bootmakers and shoemakers, not only
against our graziers, but against our tanners. By subsequent
statutes our tanners have got themselves exempted from this
monopoly upon paying a small tax of only one shilling on the
hundred-weight of tanned leather, weighing one hundred and
twelve pounds. They have obtained likewise the drawback of
two-thirds of the excise duties imposed upon their commodity
even when exported without further manufacture. All manufactures
of leather may be exported duty free; and the exporter is besides
entitled to the drawback of the whole duties of excise. Our
graziers still continue subject to the old monopoly. Graziers
separated from one another, and dispersed through all the different
corners of the country, cannot, without great difficulty, combine
together for the purpose either of imposing monopolies upon
their fellow citizens, or of exempting themselves from such
as may have been imposed upon them by other people. Manufacturers
of all kinds, collected together in numerous bodies in all
great cities, easily can. Even the horns of cattle are prohibited
to be exported; and the two insignificant trades of the horner
and combmaker enjoy, in this respect, a monopoly against the
graziers.
Restraints, either by prohibitions or by taxes, upon the exportation
of goods which are partially, but not completely manufactured,
are not peculiar to the manufacture of leather. As long as
anything remains to be done, in order to fit any commodity
for immediate use and consumption, our manufacturers think
that they themselves ought to have the doing of it. Woolen
yarn and worsted are prohibited to be exported under the same
penalties as wool. Even white cloths are subject to a duty
upon exportation, and our dyers have so far obtained a monopoly
against our clothiers. Our clothiers would probably have been
able to defend themselves against it, but it happens that the
greater part of our principal clothiers are themselves likewise
dyers. Watch-cases, clockcases, and dial-plates for clocks
and watches have been prohibited to be exported. Our clock-makers
and watch-makers are, it seems, unwilling that the price of
this sort of workmanship should be raised upon them by the
competition of foreigners.
By some old statutes of Edward M, Henry VIII, and Edward VI,
the exportation of all metals was prohibited. Lead and tin
were alone excepted probably on account of the great abundance
of those metals, in the exportation of which a considerable
part of the trade of the kingdom in those days consisted. For
the encouragement of the mining trade, the 5th of William and
Mary, c. 17, exempted from the prohibition iron, copper, and
mundic metal made from British ore. The exportation of all
sorts of copper bars, foreign as well as British, was afterwards
permitted by the 9th and 10th of William III, c. 26. The exportation
of unmanufactured brass, of what is called gun-metal, bell-metal,
and shroff-metal, still continues to be prohibited. Brass manufactures
of all sorts may be exported duty free.
The exportation of the materials of manufacture, where it
is not altogether prohibited, is in many cases subjected to
considerable duties.
By the 8th George I, c. 15, the exportation of all goods,
the produce or manufacture of Great Britain, upon which any
duties had been imposed by former statutes, was rendered duty
free. The following goods, however, were excepted: alum, lead,
lead ore, tin, tanned leather, copperas, coals, wool cards,
white woolen cloths, lapis calaminaris, skins of all sorts,
glue, coney hair or wool, hares' wool, hair of all sorts, horses,
and litharge of lead. If you expect horses, all these are either
materials of manufacture, or incomplete manufactures (which
may be considered as materials for still further manufacture),
or instruments of trade. This statute leaves them subject to
all the old duties which had ever been imposed upon them, the
old subsidy and one per cent outwards.
By the same statute a great number of foreign drugs for dyers'
use are exempted from all duties upon importation. Each of
them, however, is afterwards subjected to a certain duty, not
indeed a very heavy one, upon exportation. Our dyers, it seems,
while they thought it for their interest to encourage the importation
of those drugs, by an exemption from all duties, thought it
likewise for their interest to throw some small discouragement
upon their exportation. The avidity, however, which suggested
this notable piece of mercantile ingenuity, most probably disappointed
itself of its object. It necessarily taught the importers to
be more careful than they might otherwise have been that their
importation should not exceed what was necessary for the supply
of the home market. The home market was at all times likely
to be more scantily supplied; the commodities were at all times
likely to be somewhat dearer there than they would have been
had the exportation been rendered as free as the importation.
By the above-mentioned statute, gum senega, or gum arabic,
being among the enumerated dyeing drugs, might be imported
duty free. They were subjected, indeed, to a small poundage
duty, amounting only to threepence in the hundredweight upon
their re-exportation. France enjoyed, at that time, an exclusive
trade to the country most productive of those drugs, that which
lies in the neighbourhood of the Senegal; and the British market
could not easily be supplied by the immediate importation of
them from the place of growth. By the 25th George II, therefore,
gum senega was allowed to be imported (contrary to the general
dispositions of the Act of Navigation) from any part of Europe.
As the law, however, did not mean to encourage this species
of trade, so contrary to the general principles of the mercantile
policy of England, it imposed a duty of ten shillings the hundredweight
upon such importation, and no part of this duty was to be afterwards
drawn back upon its exportation. The successful war which began
in 1755 gave Great Britain the same exclusive trade to those
countries which France had enjoyed before. Our manufacturers,
as soon as the peace was made, endeavoured to avail themselves
of this advantage, and to establish a monopoly in their own
favour both against the growers and against the importers of
this commodity. By the 5th George III, therefore, c. 37, the
exportation of gum senega from his Majesty's dominions in Africa
was confined to Great Britain, and was subjected to all the
same restrictions, regulations, forfeitures, and penalties
as that of the enumerated commodities of the British colonies
in America and the West Indies. Its importation, indeed, was
subjected to a small duty of sixpence the hundredweight, but
its re-exportation was subjected to the enormous duty of one
pound ten shillings the hundredweight. It was the intention
of our manufacturers that the whole produce of those countries
should be imported into Great Britain, and, in order that they
themselves might be enabled to buy it at their own price, that
no part of it should be exported again but at such an expense
as would sufficiently discourage that exportation. Their avidity,
however, upon this, as well as upon many other occasions, disappointed
itself of its object. This enormous duty presented such a temptation
to smuggling that great quantities of this commodity were clandestinely
exported, probably to all the manufacturing countries of Europe,
put particularly to Holland, not only from Great Britain but
from Africa. Upon this account, by the 14th George III, c.
10, this duty upon exportation was reduced to five shillings
the hundredweight.
In the book of rates, according to which the Old Subsidy was
levied, beaver skins were estimated at six shillings and eightpence
a piece, and the different subsidies and imposts, which before
the year 1722 had been laid upon their importation, amounted
to one-fifth part of the rate, or to sixteenpence upon each
skin; all of which, except half the Old Subsidy, amounting
only to twopence, was drawn back upon exportation. This duty
upon the importation of so important a material of manufacture
had been thought too high, and in the year 1722 the rate was
reduced to two shillings and sixpence, which reduced the duty
upon importation to sixpence, and of this only one half was
to be drawn back upon exportation. The same successful war
put the country most productive of beaver under the dominion
of Great Britain, and beaver skins being among the enumerated
commodities, their exportation from America was consequently
confined to the market of Great Britain. Our manufacturers
soon bethought themselves of the advantage which they might
make of this circumstance, and in the year 1764 the duty upon
the importation of beaver-skin was reduced to one penny, but
the duty upon exportation was raised to sevenpence each skin,
without any drawback of the duty upon importation. By the same
law, a duty of eighteenpence the pound was imposed upon the
exportation of beaverwool or wombs, without making any alteration
in the duty upon the importation of that commodity, which,
when imported by Britain and in British shipping, amounted
at that time to between fourpence and fivepence the piece.
Coals may be considered both as a material of manufacture
and as an instrument of trade. Heavy duties, accordingly, have
been imposed upon their exportation, amounting at present (1783)
to more than five shillings the ton, or to more than fifteen
shillings the chaldron, Newcastle measures, which is in most
cases more than the original value of the commodity at the
coal pit, or even at the shipping port for exportation.
The exportation, however, of the instruments of trade, properly
so called, is commonly restrained, not by high duties, but
by absolute prohibitions. Thus by the 7th and 8th of William
III, c. 20, sect. 8, the exportation of frames or engines for
knitting gloves or stockings is prohibited under the penalty,
not only of the forfeiture of such frames or engines so exported,
or attempted to be exported, but of forty pounds, one half
to the king, the other to the person who shall inform or sue
for the same. In the same manner, by the 14th George III, c.
71, the exportation to foreign parts of any utensils made use
of in the cotton, linen, woollen, and silk manufactures is
prohibited under the penalty, not only of the forfeiture of
such utensils, but of two hundred pounds, to be paid by the
person who shall offend in this manner, and likewise of two
hundred pounds to be paid by the master of the ship who shall
knowingly suffer such utensils to be loaded on board his ship.
When such heavy penalties were imposed upon the exportation
of the dead instruments of trade, it could not well be expected
that the living instrument, the artificer, should be allowed
to go free. Accordingly, by the 5th George I, c. 27, the person
who shall be convicted of enticing any artificer of, or in
any of the manufactures of Great Britain, to go into any foreign
parts in order to practise or teach his trade, is liable for
the first offence to be fined in any sum not exceeding one
hundred pounds, and to three months' imprisonment, and until
the fine shall be paid; and for the second offence, to be fined
in any sum at the discretion of the court, and to imprisonment
for twelve months, and until the fine shall be paid. By the
23rd George II, c. 13, this penalty is increased for the first
offence to five hundred pounds for every artificer so enticed,
and to twelve months' imprisonment, and until the fine shall
be paid; and for the second offence, to one thousand pounds,
and to two years' imprisonment, and until the fine shall be
paid.
By the former of those two statutes, upon proof that any person
has been enticing any artificer, or that any artificer has
promised or contracted to go into foreign parts for the purposes
aforesaid, such artificer may be obliged to give security at
the discretion of the court that he shall not go beyond the
seas, and may be committed to prison until he give such security.
If any artificer has gone beyond the seas, and is exercising
or teaching his trade in any foreign country, upon warning
being given to him by any of his Majesty's ministers or consuls
abroad, or by one of his Majesty's Secretaries of State for
the time being, if he does not, within six months after such
warning, return into this realm, and from thenceforth abide
and inhabit continually within the same, he is from thenceforth
declared incapable of taking any legacy devised to him within
this kingdom, or of being executor or administrator to any
person, or of taking any lands within this kingdom by descent,
device, or purchase. He likewise forfeits to the king all his
lands, goods, and chattels, is declared an alien in every respect,
and is put out of the king's protection.
It is unnecessary, I imagine, to observe how contrary such
regulations are to the boasted liberty of the subject, of which
we affect to be so very jealous; but which, in this case, is
so plainly sacrificed to the futile interests of our merchants
and manufacturers.
The laudable motive of all these regulations is to extend
our own manufactures, not by their own improvement, but by
the depression of those of all our neighbours, and by putting
an end, as much as possible, to the troublesome competition
of such odious and disagreeable rivals. Our master manufacturers
think it reasonable that they themselves should have the monopoly
of the ingenuity of all their countrymen. Though by restraining,
in some trades, the number of apprentices which can be employed
at one time, and by imposing the necessity of a long apprenticeship
in all trades, they endeavour, all of them, to confine the
knowledge of their respective employments to as small a number
as possible; they are unwilling, however, that any part of
this small number should go abroad to instruct foreigners.
Consumption is the sole end and purpose of all production;
and the interest of the producer ought to be attended to only
so far as it may be necessary for promoting that of the consumer.
The maxim is so perfectly self evident that it would be absurd
to attempt to prove it. But in the mercantile system the interest
of the consumer is almost constantly sacrificed to that of
the producer; and it seems to consider production, and not
consumption, as the ultimate end and object of all industry
and commerce.
In the restraints upon the importation of all foreign commodities
which can come into competition with those of our own growth
or manufacture, the interest of the home consumer is evidently
sacrificed to that of the producer. It is altogether for the
benefit of the latter that the former is obliged to pay that
enhancement of price which this monopoly almost always occasions.
It is altogether for the benefit of the producer that bounties
are granted upon the exportation of some of his productions.
The home consumer is obliged to pay, first, the tax which is
necessary for paying the bounty, and secondly, the still greater
tax which necessarily arises from the enhancement of the price
of the commodity in the home market.
By the famous treaty of commerce with Portugal, the consumer
is prevented by high duties from purchasing of a neighbouring
country a commodity which our own climate does not produce,
but is obliged to purchase it of a distant country, though
it is acknowledged that the commodity of the distant country
is of a worse quality than that of the near one. The home consumer
is obliged to submit to this inconveniency in order that the
producer may import into the distant country some of his productions
upon more advantageous terms than he would otherwise have been
allowed to do. The consumer, too, is obliged to pay whatever
enhancement in the price if those very productions this forced
exportation may occasion in the home market.
But in the system of laws which has been established for the
management of our American and West Indian colonies, the interest
of the home consumer has been sacrificed to that of the producer
with a more extravagant profusion than in all our other commercial
regulations. A great empire has been established for the sole
purpose of raising up a nation of customers who should be obliged
to buy from the shops of our different producers all the goods
with which these could supply them. For the sake of that little
enhancement of price which this monopoly might afford our producers,
the home consumers have been burdened with the whole expense
of maintaining and defending that empire. For this purpose,
and for this purpose only, in the two last wars, more than
two hundred millions have been spent, and a new debt of more
than a hundred and seventy millions has been contracted over
and above all that had been expended for the same purpose in
former wars. The interest of this debt alone is not only greater
than the whole extraordinary profit which it ever could be
pretended was made by the monopoly of the colony trade, but
than the whole value of that trade, or than the whole value
of the goods which at an average have been annually exported
to the colonies.