CHAPTERVI
OfTreatiesofCommerceWHENanationbindsitselfbytreatyeithertopermittheentryofcertaingoodsfromoneforeigncountrywhichitprohibitsfromallothers，ortoexemptthegoodsofonecountryfromdutiestowhichitsubjectsthoseofallothers，thecountry，oratleastthemerchantsandmanufacturersofthecountry，whosecommerceissofavoured，mustnecessarilyderivegreatadvantagefromthetreaty。Thosemerchantsandmanufacturersenjoyasortofmonopolyinthecountrywhichissoindulgenttothem。Thatcountrybecomesamarketbothmoreextensiveandmoreadvantageousfortheirgoods:moreextensive，becausethegoodsofothernationsbeingeitherexcludedorsubjectedtoheavierduties，ittakesoffagreaterquantityoftheirs:moreadvantageous，becausethemerchantsofthefavouredcountry，enjoyingasortofmonopolythere，willoftenselltheirgoodsforabetterpricethanifexposedtothefreecompetitionofallothernations。
Suchtreaties，however，thoughtheymaybeadvantageoustothemerchantsandmanufacturersofthefavoured，arenecessarilydisadvantageoustothoseofthefavouringcountry。Amonopolyisthusgrantedagainstthemtoaforeignnation;andtheymustfrequentlybuytheforeigngoodstheyhaveoccasionfordearerthanifthefreecompetitionofothernationswasadmitted。Thatpartofitsownproducewithwhichsuchanationpurchasesforeigngoodsmustconsequentlybesoldcheaper，becausewhentwothingsareexchangedforoneanother，thecheapnessoftheoneisanecessaryconsequence，orratherthesamethingwiththedearnessoftheother。Theexchangeablevalueofitsannualproduce，therefore，islikelytobediminishedbyeverysuchtreaty。Thisdiminution，however，canscarceamounttoanypositiveloss，butonlytoalesseningofthegainwhichitmightotherwisemake。Thoughitsellsitsgoodscheaperthanitotherwisemightdo，itwillnotprobablysellthemforlessthantheycost;nor，asinthecaseofbounties，forapricewhichwillnotreplacethecapitalemployedinbringingthemtomarket，togetherwiththeordinaryprofitsofstock。Thetradecouldnotgoonlongifitdid。Eventhefavouringcountry，therefore，maystillgainbythetrade，thoughlessthaniftherewasafreecompetition。
Sometreatiesofcommerce，however，havebeensupposedadvantageousuponprinciplesverydifferentfromthese;andacommercialcountryhassometimesgrantedamonopolyofthiskindagainstitselftocertaingoodsofaforeignnation，becauseitexpectedthatinthewholecommercebetweenthem，itwouldannuallysellmorethanitwouldbuy，andthatabalanceingoldandsilverwouldbeannuallyreturnedtoit。ItisuponthisprinciplethatthetreatyofcommercebetweenEnglandandPortugal，concludedin1703byMr。Methuen，hasbeensomuchcommended。Thefollowingisaliteraltranslationofthattreaty，whichconsistsofthreearticlesonly。
ART。I。