Byestablishedestablishmentofcoloniesindistantcountries,notonlyparticularprivileges,butamonopolywasfrequentlyprocuredforthegoodsandmerchantsofthecountrywhichestablishedthem。
Thetwosortsofrestraintsuponimportationabove—mentioned,togetherwiththesefourencouragementstoexportation,constitutethesixprincipalmeansbywhichthecommercialsystemproposestoincreasethequantityofgoldandsilverinanycountrybyturningthebalanceoftradeinitsfavour。Ishallconsidereachoftheminaparticularchapter,andwithouttakingmuchfurthernoticeoftheirsupposedtendencytobringmoneyintothecountry,Ishallexaminechieflywhatarelikelytobetheeffectsofeachofthemupontheannualproduceofitsindustry。Accordingastheytendeithertoincreaseordiminishthevalueofthisannualproduce,theymustevidentlytendeithertoincreaseordiminishtherealwealthandrevenueofthecountry。
CHAPTERII
OfRestraintsupontheImportationfromForeignCountriesofsuchGoodsascanbeproducedatHomeBYrestraining,eitherbyhighdutiesorbyabsoluteprohibitions,theimportationofsuchgoodsfromforeigncountriesascanbeproducedathome,themonopolyofthehomemarketismoreorlesssecuredtothedomesticindustryemployedinproducingthem。ThustheprohibitionofimportingeitherlivecattleorsaltprovisionsfromforeigncountriessecurestothegraziersofGreatBritainthemonopolyofthehomemarketforbutcher’smeat。Thehighdutiesupontheimportationofcorn,whichintimesofmoderateplentyamounttoaprohibition,givealikeadvantagetothegrowersofthatcommodity。Theprohibitionoftheimportationofforeignwoollensisequallyfavourabletothewoollenmanufacturers。Thesilkmanufacture,thoughaltogetheremployeduponforeignmaterials,haslatelyobtainedthesameadvantage。Thelinenmanufacturehasnotyetobtainedit,butismakinggreatstridestowardsit。Manyothersortsofmanufacturershave,inthesamemanner,obtainedinGreatBritain,eitheraltogetherorverynearly,amonopolyagainsttheircountrymen。ThevarietyofgoodsofwhichtheimportationintoGreatBritainisprohibited,eitherabsolutely,orundercertaincircumstances,greatlyexceedswhatcaneasilybesuspectedbythosewhoarenotwellacquaintedwiththelawsofthecustoms。
Thatthismonopolyofthehomemarketfrequentlygivesgreatencouragementtothatparticularspeciesofindustrywhichenjoysit,andfrequentlyturnstowardsthatemploymentagreatershareofboththelabourandstockofthesocietythanwouldotherwisehavegonetoit,cannotbedoubted。Butwhetherittendseithertoincreasethegeneralindustryofthesociety,ortogiveitthemostadvantageousdirection,isnot,perhaps,altogethersoevident。
Thegeneralindustryofthesocietynevercanexceedwhatthecapitalofthesocietycanemploy。Asthenumberofworkmenthatcanbekeptinemploymentbyanyparticularpersonmustbearacertainproportiontohiscapital,sothenumberofthosethatcanbecontinuallyemployedbyallthemembersofagreatsocietymustbearacertainproportiontothewholecapitalofthatsociety,andnevercanexceedthatproportion。Noregulationofcommercecanincreasethequantityofindustryinanysocietybeyondwhatitscapitalcanmaintain。Itcanonlydivertapartofitintoadirectionintowhichitmightnototherwisehavegone;anditisbynomeanscertainthatthisartificialdirectionislikelytobemoreadvantageoustothesocietythanthatintowhichitwouldhavegoneofitsownaccord。
Everyindividualiscontinuallyexertinghimselftofindoutthemostadvantageousemploymentforwhatevercapitalhecancommand。Itishisownadvantage,indeed,andnotthatofthesociety,whichhehasinview。Butthestudyofhisownadvantagenaturally,orrathernecessarily,leadshimtopreferthatemploymentwhichismostadvantageoustothesociety。
First,everyindividualendeavourstoemployhiscapitalasnearhomeashecan,andconsequentlyasmuchashecaninthesupportofdomesticindustry;providedalwaysthathecantherebyobtaintheordinary,ornotagreatdeallessthantheordinaryprofitsofstock。
Thus,uponequalornearlyequalprofits,everywholesalemerchantnaturallyprefersthehometradetotheforeigntradeofconsumption,andtheforeigntradeofconsumptiontothecarryingtrade。Inthehometradehiscapitalisneversolongoutofhissightasitfrequentlyisintheforeigntradeofconsumption。Hecanknowbetterthecharacterandsituationofthepersonswhomhetrusts,andifheshouldhappentobedeceived,heknowsbetterthelawsofthecountryfromwhichhemustseekredress。
Inthecarryingtrade,thecapitalofthemerchantis,asitwere,dividedbetweentwoforeigncountries,andnopartofitisevernecessarilybroughthome,orplacedunderhisownimmediateviewandcommand。ThecapitalwhichanAmsterdammerchantemploysincarryingcornfromKonigsbergtoLisbon,andfruitandwinefromLisbontoKonigsberg,mustgenerallybetheonehalfofitatKonigsbergandtheotherhalfatLisbon。NopartofitneedevercometoAmsterdam。ThenaturalresidenceofsuchamerchantshouldeitherbeatKonigsbergorLisbon,anditcanonlybesomeveryparticularcircumstanceswhichcanmakehimprefertheresidenceofAmsterdam。Theuneasiness,however,whichhefeelsatbeingseparatedsofarfromhiscapitalgenerallydetermineshimtobringpartbothoftheKonigsberggoodswhichhedestinesforthemarketofLisbon,andoftheLisbongoodswhichhedestinesforthatofKonigsberg,toAmsterdam:andthoughthisnecessarilysubjectshimtoadoublechargeofloadingandunloading,aswellastothepaymentofsomedutiesandcustoms,yetforthesakeofhavingsomepartofhiscapitalalwaysunderhisownviewandcommand,hewillinglysubmitstothisextraordinarycharge;anditisinthismannerthateverycountrywhichhasanyconsiderableshareofthecarryingtradebecomesalwaystheemporium,orgeneralmarket,forthegoodsofallthedifferentcountrieswhosetradeitcarrieson。Themerchant,inordertosaveasecondloadingandunloading,endeavoursalwaystosellinthehomemarketasmuchofthegoodsofallthosedifferentcountriesashecan,andthus,sofarashecan,toconverthiscarryingtradeintoaforeigntradeofconsumption。A
merchant,inthesamemanner,whoisengagedintheforeigntradeofconsumption,whenhecollectsgoodsforforeignmarkets,willalwaysbeglad,uponequalornearlyequalprofits,tosellasgreatapartofthemathomeashecan。Hesaveshimselftheriskandtroubleofexportation,when,sofarashecan,hethusconvertshisforeigntradeofconsumptionintoahometrade。Homeisinthismannerthecentre,ifImaysayso,roundwhichthecapitalsoftheinhabitantsofeverycountryarecontinuallycirculating,andtowardswhichtheyarealwaystending,thoughbyparticularcausestheymaysometimesbedrivenoffandrepelledfromittowardsmoredistantemployments。Butacapitalemployedinthehometrade,ithasalreadybeenshown,necessarilyputsintomotionagreaterquantityofdomesticindustry,andgivesrevenueandemploymenttoagreaternumberoftheinhabitantsofthecountry,thananequalcapitalemployedintheforeigntradeofconsumption:andoneemployedintheforeigntradeofconsumptionhasthesameadvantageoveranequalcapitalemployedinthecarryingtrade。Uponequal,oronlynearlyequalprofits,therefore,everyindividualnaturallyinclinestoemployhiscapitalinthemannerinwhichitislikelytoaffordthegreatestsupporttodomesticindustry,andtogiverevenueandemploymenttothegreatestnumberofpeopleofhisowncountry。
Secondly,everyindividualwhoemployshiscapitalinthesupportofdomesticindustry,necessarilyendeavourssotodirectthatindustrythatitsproducemaybeofthegreatestpossiblevalue。
Theproduceofindustryiswhatitaddstothesubjectormaterialsuponwhichitisemployed。Inproportionasthevalueofthisproduceisgreatorsmall,sowilllikewisebetheprofitsoftheemployer。Butitisonlyforthesakeofprofitthatanymanemploysacapitalinthesupportofindustry;andhewillalways,therefore,endeavourtoemployitinthesupportofthatindustryofwhichtheproduceislikelytobeofthegreatestvalue,ortoexchangeforthegreatestquantityeitherofmoneyorofothergoods。
Buttheannualrevenueofeverysocietyisalwayspreciselyequaltotheexchangeablevalueofthewholeannualproduceofitsindustry,orratherispreciselythesamethingwiththatexchangeablevalue。Aseveryindividual,therefore,endeavoursasmuchashecanbothtoemployhiscapitalinthesupportofdomesticindustry,andsotodirectthatindustrythatitsproducemaybeofthegreatestvalue;everyindividualnecessarilylabourstorendertheannualrevenueofthesocietyasgreatashecan。Hegenerally,indeed,neitherintendstopromotethepublicinterest,norknowshowmuchheispromotingit。Bypreferringthesupportofdomestictothatofforeignindustry,heintendsonlyhisownsecurity;andbydirectingthatindustryinsuchamannerasitsproducemaybeofthegreatestvalue,heintendsonlyhisowngain,andheisinthis,asinmanyothercases,ledbyaninvisiblehandtopromoteanendwhichwasnopartofhisintention。Norisitalwaystheworseforthesocietythatitwasnopartofit。Bypursuinghisowninteresthefrequentlypromotesthatofthesocietymoreeffectuallythanwhenhereallyintendstopromoteit。Ihaveneverknownmuchgooddonebythosewhoaffectedtotradeforthepublicgood。Itisanaffectation,indeed,notverycommonamongmerchants,andveryfewwordsneedbeemployedindissuadingthemfromit。
Whatisthespeciesofdomesticindustrywhichhiscapitalcanemploy,andofwhichtheproduceislikelytobeofthegreatestvalue,everyindividual,itisevident,can,inhislocalsituation,judgemuchbetterthananystatesmanorlawgivercandoforhim。Thestatesmanwhoshouldattempttodirectprivatepeopleinwhatmannertheyoughttoemploytheircapitalswouldnotonlyloadhimselfwithamostunnecessaryattention,butassumeanauthoritywhichcouldsafelybetrusted,notonlytonosingleperson,buttonocouncilorsenatewhatever,andwhichwouldnowherebesodangerousasinthehandsofamanwhohadfollyandpresumptionenoughtofancyhimselffittoexerciseit。
Togivethemonopolyofthehomemarkettotheproduceofdomesticindustry,inanyparticularartormanufacture,isinsomemeasuretodirectprivatepeopleinwhatmannertheyoughttoemploytheircapitals,andmust,inalmostallcases,beeitherauselessorahurtfulregulation。Iftheproduceofdomesticcanbebroughtthereascheapasthatofforeignindustry,theregulationisevidentlyuseless。Ifitcannot,itmustgenerallybehurtful。Itisthemaximofeveryprudentmasterofafamilynevertoattempttomakeathomewhatitwillcosthimmoretomakethantobuy。Thetailordoesnotattempttomakehisownshoes,butbuysthemoftheshoemaker。Theshoemakerdoesnotattempttomakehisownclothes,butemploysatailor。
Thefarmerattemptstomakeneithertheonenortheother,butemploysthosedifferentartificers。Allofthemfinditfortheirinteresttoemploytheirwholeindustryinawayinwhichtheyhavesomeadvantageovertheirneighbours,andtopurchasewithapartofitsproduce,orwhatisthesamething,withthepriceofapartofit,whateverelsetheyhaveoccasionfor。
Whatisprudenceintheconductofeveryprivatefamilycanscarcebefollyinthatofagreatkingdom。Ifaforeigncountrycansupplyuswithacommoditycheaperthanweourselvescanmakeit,betterbuyitofthemwithsomepartoftheproduceofourownindustryemployedinawayinwhichwehavesomeadvantage。
Thegeneralindustryofthecountry,beingalwaysinproportiontothecapitalwhichemploysit,willnottherebybediminished,nomorethanthatoftheabove—mentionedartificers;butonlylefttofindoutthewayinwhichitcanbeemployedwiththegreatestadvantage。Itiscertainlynotemployedtothegreatestadvantagewhenitisthusdirectedtowardsanobjectwhichitcanbuycheaperthanitcanmake。Thevalueofitsannualproduceiscertainlymoreorlessdiminishedwhenitisthusturnedawayfromproducingcommoditiesevidentlyofmorevaluethanthecommoditywhichitisdirectedtoproduce。Accordingtothesupposition,thatcommoditycouldbepurchasedfromforeigncountriescheaperthanitcanbemadeathome。Itcould,therefore,havebeenpurchasedwithapartonlyofthecommodities,or,whatisthesamething,withapartonlyofthepriceofthecommodities,whichtheindustryemployedbyanequalcapitalwouldhaveproducedathome,haditbeenlefttofollowitsnaturalcourse。Theindustryofthecountry,therefore,isthusturnedawayfromamoretoalessadvantageousemployment,andtheexchangeablevalueofitsannualproduce,insteadofbeingincreased,accordingtotheintentionofthelawgiver,mustnecessarilybediminishedbyeverysuchregulation。
Bymeansofsuchregulations,indeed,aparticularmanufacturemaysometimesbeacquiredsoonerthanitcouldhavebeenotherwise,andafteracertaintimemaybemadeathomeascheaporcheaperthanintheforeigncountry。Butthoughtheindustryofthesocietymaybethuscarriedwithadvantageintoaparticularchannelsoonerthanitcouldhavebeenotherwise,itwillbynomeansfollowthatthesumtotal,eitherofitsindustry,orofitsrevenue,caneverbeaugmentedbyanysuchregulation。Theindustryofthesocietycanaugmentonlyinproportionasitscapitalaugments,anditscapitalcanaugmentonlyinproportiontowhatcanbegraduallysavedoutofitsrevenue。Buttheimmediateeffectofeverysuchregulationistodiminishitsrevenue,andwhatdiminishesitsrevenueiscertainlynotverylikelytoaugmentitscapitalfasterthanitwouldhaveaugmentedofitsownaccordhadbothcapitalandindustrybeenlefttofindouttheirnaturalemployments。
Thoughforwantofsuchregulationsthesocietyshouldneveracquiretheproposedmanufacture,itwouldnot,uponthataccount,necessarilybethepoorerinanyoneperiodofitsduration。Ineveryperiodofitsdurationitswholecapitalandindustrymightstillhavebeenemployed,thoughupondifferentobjects,inthemannerthatwasmostadvantageousatthetime。Ineveryperioditsrevenuemighthavebeenthegreatestwhichitscapitalcouldafford,andbothcapitalandrevenuemighthavebeenaugmentedwiththegreatestpossiblerapidity。
Thenaturaladvantageswhichonecountryhasoveranotherinproducingparticularcommoditiesaresometimessogreatthatitisacknowledgedbyalltheworldtobeinvaintostrugglewiththem。Bymeansofglasses,hotbeds,andhotwalls,verygoodgrapescanberaisedinScotland,andverygoodwinetoocanbemadeofthemataboutthirtytimestheexpenseforwhichatleastequallygoodcanbebroughtfromforeigncountries。WoulditbeareasonablelawtoprohibittheimportationofallforeignwinesmerelytoencouragethemakingofclaretandburgundyinScotland?Butiftherewouldbeamanifestabsurdityinturningtowardsanyemploymentthirtytimesmoreofthecapitalandindustryofthecountrythanwouldbenecessarytopurchasefromforeigncountriesanequalquantityofthecommoditieswanted,theremustbeanabsurdity,thoughnotaltogethersoglaring,yetexactlyofthesamekind,inturningtowardsanysuchemploymentathirtieth,orevenathree—hundredthpartmoreofeither。
Whethertheadvantageswhichonecountryhasoveranotherbenaturaloracquiredisinthisrespectofnoconsequence。Aslongastheonecountryhasthoseadvantages,andtheotherwantsthem,itwillalwaysbemoreadvantageousforthelatterrathertobuyoftheformerthantomake。Itisanacquiredadvantageonly,whichoneartificerhasoverhisneighbour,whoexercisesanothertrade;andyettheybothfinditmoreadvantageoustobuyofoneanotherthantomakewhatdoesnotbelongtotheirparticulartrades。
Merchantsandmanufacturersarethepeoplewhoderivethegreatestadvantagefromthismonopolyofthehomemarket。Theprohibitionoftheimportationofforeigncattle,andofsaltprovisions,togetherwiththehighdutiesuponforeigncorn,whichintimesofmoderateplentyamounttoaprohibition,arenotnearsoadvantageoustothegraziersandfarmersofGreatBritainasotherregulationsofthesamekindaretoitsmerchantsandmanufacturers。Manufactures,thoseofthefinerkindespecially,aremoreeasilytransportedfromonecountrytoanotherthancornorcattle。Itisinthefetchingandcarryingmanufactures,accordingly,thatforeigntradeischieflyemployed。Inmanufactures,averysmalladvantagewillenableforeignerstoundersellourownworkmen,eveninthehomemarket。
Itwillrequireaverygreatonetoenablethemtodosointherudeproduceofthesoil。Ifthefreeimportationofforeignmanufactureswerepermitted,severalofthehomemanufactureswouldprobablysuffer,andsomeofthem,perhaps,gotoruinaltogether,andaconsiderablepartofthestockandindustryatpresentemployedinthemwouldbeforcedtofindoutsomeotheremployment。Butthefreestimportationoftherudeproduceofthesoilcouldhavenosucheffectupontheagricultureofthecountry。
Iftheimportationofforeigncattle,forexample,weremadeeversofree,sofewcouldbeimportedthatthegrazingtradeofGreatBritaincouldbelittleaffectedbyit。Livecattleare,perhaps,theonlycommodityofwhichthetransportationismoreexpensivebyseathanbyland。Bylandtheycarrythemselvestomarket。Bysea,notonlythecattle,buttheirfoodandtheirwatertoo,mustbecarriedatnosmallexpenseandinconveniency。
TheshortseabetweenIrelandandGreatBritain,indeed,renderstheimportationofIrishcattlemoreeasy。Butthoughthefreeimportationofthem,whichwaslatelypermittedonlyforalimitedtime,wererenderedperpetual,itcouldhavenoconsiderableeffectupontheinterestofthegraziersofGreatBritain。ThosepartsofGreatBritainwhichborderupontheIrishSeaareallgrazingcountries。Irishcattlecouldneverbeimportedfortheiruse,butmustbedriventhroughthoseveryextensivecountries,atnosmallexpenseandinconveniency,beforetheycouldarriveattheirpropermarket。Fatcattlecouldnotbedrivensofar。Leancattle,therefore,onlycouldbeimported,andsuchimportationcouldinterfere,notwiththeinterestofthefeedingorfatteningcountries,towhich,byreducingthepriceofleancattle,itwouldratherbeadvantageous,butwiththatofthebreedingcountriesonly。ThesmallnumberofIrishcattleimportedsincetheirimportationwaspermitted,togetherwiththegoodpriceatwhichleancattlestillcontinuetosell,seemtodemonstratethateventhebreedingcountriesofGreatBritainareneverlikelytobemuchaffectedbythefreeimportationofIrishcattle。ThecommonpeopleofIreland,indeed,aresaidtohavesometimesopposedwithviolencetheexportationoftheircattle。Butiftheexportershadfoundanygreatadvantageincontinuingthetrade,theycouldeasily,whenthelawwasontheirside,haveconqueredthismobbishopposition。
Feedingandfatteningcountries,besides,mustalwaysbehighlyimproved,whereasbreedingcountriesaregenerallyuncultivated。Thehighpriceofleancattle,byaugmentingthevalueofuncultivatedland,islikeabountyagainstimprovement。
Toanycountrywhichwashighlyimprovedthroughout,itwouldbemoreadvantageoustoimportitsleancattlethantobreedthem。
TheprovinceofHolland,accordingly,issaidtofollowthismaximatpresent。ThemountainsofScotland,Wales,andNorthumberland,indeed,arecountriesnotcapableofmuchimprovement,andseemdestinedbynaturetobethebreedingcountriesofGreatBritain。Thefreestimportationofforeigncattlecouldhavenoothereffectthantohinderthosebreedingcountriesfromtakingadvantageoftheincreasingpopulationandimprovementoftherestofthekingdom,fromraisingtheirpricetoanexorbitantheight,andfromlayingarealtaxuponallthemoreimprovedandcultivatedpartsofthecountry。
Thefreestimportationofsaltprovisions,inthesamemanner,couldhaveaslittleeffectupontheinterestofthegraziersofGreatBritainasthatoflivecattle。Saltprovisionsarenotonlyaverybulkycommodity,butwhencomparedwithfreshmeat,theyareacommoditybothofworsequality,andastheycostmorelabourandexpense,ofhigherprice。Theycouldnever,therefore,comeintocompetitionwiththefreshmeat,thoughtheymightwiththesaltprovisionsofthecountry。Theymightbeusedforvictuallingshipsfordistantvoyagesandsuchlikeuses,butcouldnevermakeanyconsiderablepartofthefoodofthepeople。
ThesmallquantityofsaltprovisionsimportedfromIrelandsincetheirimportationwasrenderedfreeisanexperimentalproofthatourgraziershavenothingtoapprehendfromit。Itdoesnotappearthatthepriceofbutcher’smeathaseverbeensensiblyaffectedbyit。
EventhefreeimportationofforeigncorncouldverylittleaffecttheinterestofthefarmersofGreatBritain。Cornisamuchmorebulkycommoditythanbutcher’smeat。Apoundofwheatatapennyisasdearasapoundofbutcher’smeatatfourpence。
Thesmallquantityofforeigncornimportedevenintimesofthegreatestscarcitymaysatisfyourfarmersthattheycanhavenothingtofearfromthefreestimportation。Theaveragequantityimported,oneyearwithanother,amountsonly,accordingtotheverywellinformedauthorofthetractsuponthecorntrade,totwenty—threethousandsevenhundredandtwenty—eightquartersofallsortsofgrain,anddoesnotexceedthefivehundredandseventy—firstpartoftheannualconsumption。Butasthebountyuponcornoccasionsagreaterexportationinyearsofplenty,soitmustofconsequenceoccasionagreaterimportationinyearsofscarcitythanintheactualstateoftillagewouldotherwisetakeplace。Bymeansofittheplentyofoneyeardoesnotcompensatethescarcityofanother,andastheaveragequantityexportedisnecessarilyaugmentedbyit,somustlikewise,intheactualstateoftillage,theaveragequantityimported。Iftherewerenobounty,aslesscornwouldbeexported,soitisprobablethat,oneyearwithanother,lesswouldbeimportedthanatpresent。
Thecorn—merchants,thefetchersandcarriersofcornbetweenGreatBritainandforeigncountrieswouldhavemuchlessemployment,andmightsufferconsiderably;butthecountrygentlemenandfarmerscouldsufferverylittle。Itisinthecornmerchantsaccordingly,ratherthaninthecountrygentlemenandfarmers,thatIhaveobservedthegreatestanxietyfortherenewalandcontinuationofthebounty。
Countrygentlemenandfarmersare,totheirgreathonour,ofallpeople,theleastsubjecttothewretchedspiritofmonopoly。
Theundertakerofagreatmanufactoryissometimesalarmedifanotherworkofthesamekindisestablishedwithintwentymilesofhim。TheDutchundertakerofthewoollenmanufactureatAbbevillestipulatedthatnoworkofthesamekindshouldbeestablishedwithinthirtyleaguesofthatcity。Farmersandcountrygentlemen,onthecontrary,aregenerallydisposedrathertopromotethantoobstructthecultivationandimprovementoftheirneighbours’farmsandestates。Theyhavenosecretssuchasthoseofthegreaterpartofmanufacturers,butaregenerallyratherfondofcommunicatingtotheirneighboursandofextendingasfaraspossibleanynewpracticewhichtheyhavefoundtobeadvantageous。PiusQuestus,saysoldCato,stabilissimusque,minimequeinvidiosus;minimequemalecogitantessunt,quiineostudiooccupatisunt。Countrygentlemenandfarmers,dispersedindifferentpartsofthecountry,cannotsoeasilycombineasmerchantsandmanufacturers,who,beingcollectedintotowns,andaccustomedtothatexclusivecorporationspiritwhichprevailsinthem,naturallyendeavourtoobtainagainstalltheircountrymenthesameexclusiveprivilegewhichtheygenerallypossessagainsttheinhabitantsoftheirrespectivetowns。Theyaccordinglyseemtohavebeentheoriginalinventorsofthoserestraintsupontheimportationofforeigngoodswhichsecuretothemthemonopolyofthehomemarket。Itwasprobablyinimitationofthem,andtoputthemselvesuponalevelwiththosewho,theyfound,weredisposedtooppressthem,thatthecountrygentlemenandfarmersofGreatBritaininsofarforgotthegenerositywhichisnaturaltotheirstationastodemandtheexclusiveprivilegeofsupplyingtheircountrymenwithcornandbutcher’smeat。Theydidnotperhapstaketimetoconsiderhowmuchlesstheirinterestcouldbeaffectedbythefreedomoftradethanthatofthepeoplewhoseexampletheyfollowed。
Toprohibitbyaperpetuallawtheimportationofforeigncornandcattleisinrealitytoenactthatthepopulationandindustryofthecountryshallatnotimeexceedwhattherudeproduceofitsownsoilcanmaintain。
Thereseem,however,tobetwocasesinwhichitwillgenerallybeadvantageoustolaysomeburdenuponforeignfortheencouragementofdomesticindustry。
Thefirstis,whensomeparticularsortofindustryisnecessaryforthedefenceofthecountry。ThedefenceofGreatBritain,forexample,dependsverymuchuponthenumberofitssailorsandshipping。TheActofNavigation,therefore,veryproperlyendeavourstogivethesailorsandshippingofGreatBritainthemonopolyofthetradeoftheirowncountryinsomecasesbyabsoluteprohibitionsandinothersbyheavyburdensupontheshippingofforeigncountries。ThefollowingaretheprincipaldispositionsofthisAct。
First,allships,ofwhichtheownersandthree—fourthsofthemarinersarenotBritishsubjects,areprohibited,uponpainofforfeitingshipandcargo,fromtradingtotheBritishsettlementsandplantations,orfrombeingemployedinthecoastingtradeofGreatBritain。
Secondly,agreatvarietyofthemostbulkyarticlesofimportationcanbebroughtintoGreatBritainonly,eitherinsuchshipsasareabovedescribed,orinshipsofthecountrywherethosegoodsarepurchased,andofwhichtheowners,masters,andthree—fourthsofthemarinersareofthatparticularcountry;andwhenimportedeveninshipsofthislatterkind,theyaresubjecttodoublealiens’duty。Ifimportedinshipsofanyothercountry,thepenaltyisforfeitureofshipandgoods。
Whenthisactwasmade,theDutchwere,whattheystillare,thegreatcarriersofEurope,andbythisregulationtheywereentirelyexcludedfrombeingthecarrierstoGreatBritain,orfromimportingtousthegoodsofanyotherEuropeancountry。
Thirdly,agreatvarietyofthemostbulkyarticlesofimportationareprohibitedfrombeingimported,eveninBritishships,fromanycountrybutthatinwhichtheyareproduced,underpainsofforfeitingshipandcargo。Thisregulation,too,wasprobablyintendedagainsttheDutch。Hollandwasthen,asnow,thegreatemporiumforallEuropeangoods,andbythisregulationBritishshipswerehinderedfromloadinginHollandthegoodsofanyotherEuropeancountry。
Fourthly,saltfishofallkinds,whale—fins,whale—bone,oil,andblubber,notcaughtbyandcuredonboardBritishvessels,whenimportedintoGreatBritain,aresubjectedtodoublealiens’duty。TheDutch,astheyaretheytheprincipal,werethentheonlyfishersinEuropethatattemptedtosupplyforeignnationswithfish。Bythisregulation,averyheavyburdenwaslaidupontheirsupplyingGreatBritain。
WhentheActofNavigationwasmade,thoughEnglandandHollandwerenotactuallyatwar,themostviolentanimositysubsistedbetweenthetwonations。IthadbegunduringthegovernmentoftheLongParliament,whichfirstframedthisact,anditbrokeoutsoonafterintheDutchwarsduringthatoftheProtectorandofCharlestheSecond。Itisnotimpossible,therefore,thatsomeoftheregulationsofthisfamousactmayhaveproceededfromnationalanimosity。Theyareaswise,however,asiftheyhadallbeendictatedbythemostdeliberatewisdom。Nationalanimosityatthatparticulartimeaimedattheverysameobjectwhichthemostdeliberatewisdomwouldhaverecommended,thediminutionofthenavalpowerofHolland,theonlynavalpowerwhichcouldendangerthesecurityofEngland。
TheActofNavigationisnotfavourabletoforeigncommerce,ortothegrowthofthatopulencewhichcanarisefromit。Theinterestofanationinitscommercialrelationstoforeignnationsis,likethatofamerchantwithregardtothedifferentpeoplewithwhomhedeals,tobuyascheapandtosellasdearaspossible。Butitwillbemostlikelytobuycheap,whenbythemostperfectfreedomoftradeitencouragesallnationstobringtoitthegoodswhichithasoccasiontopurchase;and,forthesamereason,itwillbemostlikelytoselldear,whenitsmarketsarethusfilledwiththegreatestnumberofbuyers。TheActofNavigation,itistrue,laysnoburdenuponforeignshipsthatcometoexporttheproduceofBritishindustry。Eventheancientaliens’duty,whichusedtobepaiduponallgoodsexportedaswellasimported,has,byseveralsubsequentacts,beentakenofffromthegreaterpartofthearticlesofexportation。Butifforeigners,eitherbyprohibitionsorhighduties,arehinderedfromcomingtosell,theycannotalwaysaffordtocometobuy;becausecomingwithoutacargo,theymustlosethefreightfromtheirowncountrytoGreatBritain。Bydiminishingthenumberofsellers,therefore,wenecessarilydiminishthatofbuyers,andarethuslikelynotonlytobuyforeigngoodsdearer,buttosellourowncheaper,thaniftherewasamoreperfectfreedomoftrade。Asdefence,howeveritisofmuchmoreimportancethanopulence,theActofNavigationis,perhaps,thewisestofallthecommercialregulationsofEngland。
Thesecondcase,inwhichitwillgenerallybeadvantageoustolaysomeburdenuponforeignfortheencouragementofdomesticindustryis,whensometaxisimposedathomeupontheproduceofthelatter。Inthiscase,itseemsreasonablethatanequaltaxshouldbeimposeduponthelikeproduceoftheformer。Thiswouldnotgivethemonopolyofthehomemarkettodomesticindustry,norturntowardsaparticularemploymentagreatershareofthestockandlabourofthecountrythanwhatwouldnaturallygotoit。Itwouldonlyhinderanypartofwhatwouldnaturallygotoitfrombeingturnedawaybythetaxintoalessnaturaldirection,andwouldleavethecompetitionbetweenforeignanddomesticindustry,afterthetax,asnearlyaspossibleuponthesamefootingasbeforeit。InGreatBritain,whenanysuchtaxislaidupontheproduceofdomesticindustry,itisusualatthesametime,inordertostoptheclamorouscomplaintsofourmerchantsandmanufacturersthattheywillbeundersoldathome,tolayamuchheavierdutyupontheimportationofallforeigngoodsofthesamekind。
Thissecondlimitationofthefreedomoftradeaccordingtosomepeopleshould,uponsomeoccasions,beextendedmuchfartherthantothepreciseforeigncommoditieswhichcouldcomeintocompetitionwiththosewhichhadbeentaxedathome。Whenthenecessariesoflifehavebeentaxedanycountry,itbecomesproper,theypretend,totaxnotonlythelikenecessariesoflifeimportedfromothercountries,butallsortsofforeigngoodswhichcancomeintocompetitionwithanythingthatistheproduceofdomesticindustry。Subsistence,theysay,becomesnecessarilydearerinconsequenceofsuchtaxes;andthepriceoflabourmustalwaysrisewiththepriceofthelabourers’
subsistence。Everycommodity,therefore,whichistheproduceofdomesticindustry,thoughnotimmediatelytaxeditself,becomesdearerinconsequenceofsuchtaxes,becausethelabourwhichproducesitbecomesso。Suchtaxes,therefore,arereallyequivalent,theysay,toataxuponeveryparticularcommodityproducedathome。Inordertoputdomesticuponthesamefootingwithforeignindustry,therefore,itbecomesnecessary,theythink,tolaysomedutyuponeveryforeigncommodityequaltothisenhancementofthepriceofthehomecommoditieswithwhichitcancomeintocompetition。
Whethertaxesuponthenecessariesoflife,suchasthoseinGreatBritainuponsoap,salt,leather,candles,etc。,necessarilyraisethepriceoflabour,andconsequentlythatofallothercommodities,IshallconsiderhereafterwhenIcometotreatoftaxes。Supposing,however,inthemeantime,thattheyhavethiseffect,andtheyhaveitundoubtedly,thisgeneralenhancementofthepriceofallcommodities,inconsequenceofthatoflabour,isacasewhichdiffersinthetwofollowingrespectsfromthatofaparticularcommodityofwhichthepricewasenhancedbyaparticulartaximmediatelyimposeduponit。
First,itmightalwaysbeknownwithgreatexactnesshowfarthepriceofsuchacommoditycouldbeenhancedbysuchatax:
buthowfarthegeneralenhancementofthepriceoflabourmightaffectthatofeverydifferentcommodityaboutwhichlabourwasemployedcouldneverbeknownwithanytolerableexactness。Itwouldbeimpossible,therefore,toproportionwithanytolerableexactnessthetaxuponeveryforeigntothisenhancementofthepriceofeveryhomecommodity。
Secondly,taxesuponthenecessariesoflifehavenearlythesameeffectuponthecircumstancesofthepeopleasapoorsoilandabadclimate。Provisionsaretherebyrendereddearerinthesamemannerasifitrequiredextraordinarylabourandexpensetoraisethem。Asinthenaturalscarcityarisingfromsoilandclimateitwouldbeabsurdtodirectthepeopleinwhatmannertheyoughttoemploytheircapitalsandindustry,soisitlikewiseintheartificialscarcityarisingfromsuchtaxes。Tobelefttoaccommodate,aswellastheycould,theirindustrytotheirsituation,andtofindoutthoseemploymentsinwhich,notwithstandingtheirunfavourablecircumstances,theymighthavesomeadvantageeitherinthehomeorintheforeignmarket,iswhatinbothcaseswouldevidentlybemostfortheiradvantage。
Tolayanewtaxuponthem,becausetheyarealreadyoverburdenedwithtaxes,andbecausetheyalreadypaytoodearforthenecessariesoflife,tomakethemlikewisepaytoodearforthegreaterpartofothercommodities,iscertainlyamostabsurdwayofmakingamends。
Suchtaxes,whentheyhavegrownuptoacertainheight,areacurseequaltothebarrennessoftheearthandtheinclemencyoftheheavens;andyetitisintherichestandmostindustriouscountriesthattheyhavebeenmostgenerallyimposed。Noothercountriescouldsupportsogreatadisorder。Asthestrongestbodiesonlycanliveandenjoyhealthunderanunwholesomeregimen,sothenationsonlythatineverysortofindustryhavethegreatestnaturalandacquiredadvantagescansubsistandprosperundersuchtaxes。HollandisthecountryinEuropeinwhichtheyaboundmost,andwhichfrompeculiarcircumstancescontinuestoprosper,notbymeansofthem,ashasbeenmostabsurdlysupposed,butinspiteofthem。
Astherearetwocasesinwhichitwillgenerallybeadvantageoustolaysomeburdenuponforeignfortheencouragementofdomesticindustry,sotherearetwoothersinwhichitmaysometimesbeamatterofdeliberation;intheone,howfaritispropertocontinuethefreeimportationofcertainforeigngoods;andintheother,howfar,orinwhatmanner,itmaybepropertorestorethatfreeimportationafterithasbeenforsometimeinterrupted。