Thatthemercantilesystemhasnotbeenveryfavourabletotherevenueofthegreatbodyofthepeople,totheannualproduceofthelandandlabourofthecountry,IhaveendeavouredtoshowinthefourthbookofthisInquiry。Itseemsnottohavebeenmorefavourabletotherevenueofthesovereign,sofaratleastasthatrevenuedependsuponthedutiesofcustoms。
Inconsequenceofthatsystem,theimportationofseveralsortsofgoodshasbeenprohibitedaltogether。Thisprohibitionhasinsomecasesentirelyprevented,andinothershasverymuchdiminishedtheimportationofthosecommoditiesbyreducingtheimporterstothenecessityofsmuggling。Ithasentirelypreventedtheimportationofforeignwoollens,andithasverymuchdiminishedthatofforeignsilksandvelvets。Inbothcasesithasentirelyannihilatedtherevenueofcustomswhichmighthavebeenlevieduponsuchimportation。
Thehighdutieswhichhavebeenimposedupontheimportationofmanydifferentsortsofforeigngoods,inordertodiscouragetheirconsumptioninGreatBritain,haveinmanycasesservedonlytoencouragesmuggling,andinallcaseshavereducedtherevenueofthecustomsbelowwhatmoremoderatedutieswouldhaveafforded。ThesayingofDr。Swift,thatinthearithmeticofthecustomstwoandtwo,insteadofmakingfour,makesometimesonlyone,holdsperfectlytruewithregardtosuchheavydutieswhichnevercouldhavebeenimposedhadnotthemercantilesystemtaughtus,inmanycases,toemploytaxationasaninstrument,notofrevenue,butofmonopoly。
Thebountieswhicharesometimesgivenupontheexportationofhomeproduceandmanufactures,andthedrawbackswhicharepaiduponthere—exportationofthegreaterpartofforeigngoods,havegivenoccasiontomanyfrauds,andtoaspeciesofsmugglingmoredestructiveofthepublicrevenuethananyother。
Inordertoobtainthebountyordrawback,thegoods,itiswellknown,aresometimesshippedandsenttosea,butsoonafterwardsclandestinelyrelandedinsomeotherpartofthecountry。Thedefalcationoftherevenueofcustomsoccasionedbythebountiesanddrawbacks,ofwhichagreatpartareobtainedfraudulently,isverygreat。Thegrossproduceofthecustomsintheyearwhichendedonthe5thofJanuary1755amountedtoL5,068,000。Thebountieswhichwerepaidoutofthisrevenue,thoughinthatyeartherewasnobountyuponcorn,amountedtoL167,800。Thedrawbackswhichwerepaidupondebenturesandcertificates,toL2,156,800。BountiesanddrawbackstogetheramountedtoL2,324,600。InconsequenceofthesedeductionstherevenueofthecustomsamountedonlytoL2,743,400:fromwhich,deductingL287,900fortheexpenseofmanagementinsalariesandotherincidents,thenetrevenueofthecustomsforthatyearcomesouttobeL2,455,500。Theexpenseofmanagementamountsinthismannertobetweenfiveandsixpercentuponthegrossrevenueofthecustoms,andtosomethingmorethantenpercentuponwhatremainsofthatrevenueafterdeductingwhatispaidawayinbountiesanddrawbacks。
Heavydutiesbeingimposeduponalmostallgoodsimported,ourmerchantimporterssmuggleasmuchandmakeentryofaslittleastheycan。Ourmerchantexporters,onthecontrary,makeentryofmorethantheyexport;sometimesoutofvanity,andtopassforgreatdealersingoodswhichpaynoduty,andsometimestogainabountyoradrawback。Ourexports,inconsequenceofthesedifferentfrauds,appearuponthecustomhousebooksgreatlytooverbalanceourimports,totheunspeakablecomfortofthosepoliticianswhomeasurethenationalprosperitybywhattheycallthebalanceoftrade。
Allgoodsimported,unlessparticularlyexempted,andsuchexemptionsarenotverynumerous,areliabletosomedutiesofcustoms。Ifanygoodsareimportednotmentionedinthebookofrates,theyaretaxedat4s。99/20d。foreverytwentyshillingsvalue,accordingtotheoathoftheimporter,thatis,nearlyatfivesubsidies,orfivepoundageduties。Thebookofratesisextremelycomprehensive,andenumeratesagreatvarietyofarticles,manyofthemlittleused,andthereforenotwellknown。
Itisuponthisaccountfrequentlyuncertainunderwhatarticleaparticularsortofgoodsoughttobeclassed,andconsequentlywhatdutytheyoughttopay。Mistakeswithregardtothissometimesruinthecustom—houseofficer,andfrequentlyoccasionmuchtrouble,expense,andvexationtotheimporter。Inpointofperspicuity,precision,anddistinctness,therefore,thedutiesofcustomsaremuchmoreinferiortothoseofexcise。
Inorderthatthegreaterpartofthemembersofanysocietyshouldcontributetothepublicrevenueinproportiontotheirrespectiveexpense,itdoesnotseemnecessarythateverysinglearticleofthatexpenseshouldbetaxed。Therevenuewhichisleviedbythedutiesofexciseissupposedtofallasequallyuponthecontributorsasthatwhichisleviedbythedutiesofcustoms,andthedutiesofexciseareimposeduponafewarticlesonlyofthemostgeneraluseandconsumption。Ithasbeentheopinionofmanypeoplethat,bypropermanagement,thedutiesofcustomsmightlikewise,withoutanylosstothepublicrevenue,andwithgreatadvantagetoforeigntrade,beconfinedtoafewarticlesonly。
TheforeignarticlesofthemostgeneraluseandconsumptioninGreatBritainseematpresenttoconsistchieflyinforeignwinesandbrandies;insomeoftheproductionsofAmericaandtheWestIndies—sugar,rum,tobacco,cocoanuts,etc。;andinsomeofthoseoftheEastIndies—tea,coffee,china—ware,spiceriesofallkinds,severalsortsofpiece—goods,etc。Thesedifferentarticlesafford,perhaps,atpresent,thegreaterpartoftherevenuewhichisdrawnfromthedutiesofcustoms。Thetaxeswhichatpresentsubsistuponforeignmanufactures,ifyouexceptthoseuponthefewcontainedintheforegoingenumeration,havethegreaterpartofthembeenimposedforthepurpose,notofrevenue,butofmonopoly,ortogiveourownmerchantsanadvantageinthehomemarket。Byremovingallprohibitions,andbysubjectingallforeignmanufacturestosuchmoderatetaxesasitwasfoundfromexperienceaffordeduponeacharticlethegreatestrevenuetothepublic,ourownworkmenmightstillhaveaconsiderableadvantageinthehomemarket,andmanyarticles,someofwhichatpresentaffordnorevenuetogovernment,andothersaveryinconsiderableone,mightaffordaverygreatone。
Hightaxes,sometimesbydiminishingtheconsumptionofthetaxedcommodities,andsometimesbyencouragingsmuggling,frequentlyaffordasmallerrevenuetogovernmentthanwhatmightbedrawnfrommoremoderatetaxes。
Whenthediminutionofrevenueistheeffectofthediminutionofconsumptiontherecanbebutoneremedy,andthatistheloweringofthetax。
Whenthediminutionoftherevenueisthediminutionoftherevenueistheeffectoftheencouragementgiventosmuggling,itmayperhapsberemediedintwoways;eitherbydiminishingthetemptationtosmuggle,orbyincreasingthedifficultyofsmuggling。Thetemptationtosmugglecanbediminishedonlybytheloweringofthetax,andthedifficultyofsmugglingcanbeincreasedonlybyestablishingthatsystemofadministrationwhichismostproperforpreventingit。
Theexciselaws,itappears,Ibelieve,fromexperience,obstructandembarrasstheoperationsofthesmugglermuchmoreeffectuallythanthoseofthecustoms。Byintroducingintothecustomsasystemofadministrationassimilartothatoftheexciseasthenatureofthedifferentdutieswilladmit,thedifficultyofsmugglingmightbeverymuchincreased。Thisalteration,ithasbeensupposedbymanypeople,mightveryeasilybebroughtabout。
Theimporterofcommoditiesliabletoanydutiesofcustoms,ithasbeensaid,mightashisoptionbeallowedeithertocarrythemtohisownprivatewarehouse,ortolodgetheminawarehouseprovidedeitherathisownexpenseoratthatofthepublic,butunderthekeyofthecustom—houseofficer,andnevertobeopenedbutinhispresence。Ifthemerchantcarriedthemtohisownprivatewarehouse,thedutiestobeimmediatelypaid,andneverafterwardstobedrawnback,andthatwarehousetobeatalltimessubjecttothevisitandexaminationofthecustom—houseofficer,inordertoascertainhowfarthequantitycontainedinitcorrespondedwiththatforwhichthedutyhadbeenpaid。Ifhecarriedthemtothepublicwarehouse,nodutytobepaidtilltheyweretakenoutforhomeconsumption。Iftakenoutforexportation,tobedutyfree,propersecuritybeingalwaysgiventhattheyshouldbesoexported。Thedealersinthoseparticularcommodities,eitherbywholesaleorretail,tobeatalltimessubjecttothevisitandexaminationofthecustom—houseofficer,andtobeobligedtojustifybypropercertificatesthepaymentofthedutyuponthewholequantitycontainedintheirshopsorwarehouses。Whatarecalledtheexcise—dutiesuponrumimportedareatpresentleviedinthismanner,andthesamesystemofadministrationmightperhapsbeextendedtoalldutiesupongoodsimported,providedalwaysthatthosedutieswere,likethedutiesofexcise,confinedtoafewsortsofgoodsofthemostgeneraluseandconsumption。Iftheywereextendedtoalmostallsortsofgoods,asatpresent,publicwarehousesofsufficientextentcouldnoteasilybeprovided,andgoodsofaverydelicatenature,orofwhichthepreservationrequiredmuchcareandattention,couldnotsafelybetrustedbythemerchantinanywarehousebuthisown。
Ifbysuchasystemofadministrationsmuggling,toanyconsiderableextent,couldbepreventedevenunderprettyhighduties,andifeverydutywasoccasionallyeitherheightenedorloweredaccordingasitwasmostlikely,eithertheonewayortheother,toaffordthegreatestrevenuetothestate,taxationbeingalwaysemployedasaninstrumentofrevenueandneverofmonopoly,itseemsnotimprobablethatarevenueatleastequaltothepresentnetrevenueofthecustomsmightbedrawnfromdutiesupontheimportationofonlyafewsortsofgoodsofthemostgeneraluseandconsumption,andthatthedutiesofcustomsmightthusbebroughttothesamedegreeofsimplicity,certainty,andprecisionasthoseofexcise。Whattherevenueatpresentlosesbydrawbacksuponthere—exportationofforeigngoodswhichareafterwardsrelandedandconsumedathomewouldunderthissystembesavedaltogether。Iftothissaving,whichwouldalonebeveryconsiderable,wereaddedtheabolitionofallbountiesupontheexportationofhomeproduceinallcasesinwhichthosebountieswerenotinrealitydrawbacksofsomedutiesofexcisewhichhadbeforebeenadvanced,itcannotwellbedoubtedbutthatthenetrevenueofcustomsmight,afteranalterationofthiskind,befullyequaltowhatithadeverbeenbefore。
Ifbysuchachangeofsystemthepublicrevenuesufferednoloss,thetradeandmanufacturesofthecountrywouldcertainlygainaveryconsiderableadvantage。Thetradeinthecommoditiesnottaxed,byfarthegreatestnumber,wouldbeperfectlyfree,andmightbecarriedontoandfromallpartsoftheworldwitheverypossibleadvantage。Amongthosecommoditieswouldbecomprehendedallthenecessariesoflifeandallthematerialsofmanufacture。Sofarasthefreeimportationofthenecessariesoflifereducedtheiraveragemoneypriceinthehomemarketitwouldreducethemoneypriceoflabour,butwithoutreducinginanyrespectitsrealrecompense。Thevalueofmoneyisinproportiontothequantityofthenecessariesoflifewhichitwillpurchase。Thatofthenecessariesoflifeisaltogetherindependentofthequantityofmoneywhichcanbehadforthem。
Thereductioninthemoneypriceoflabourwouldnecessarilybeattendedwithaproportionableoneinthatofallhomemanufactures,whichwouldtherebygainsomeadvantageinallforeignmarkets。Thepriceofsomemanufactureswouldbereducedinastillgreaterproportionbythefreeimportationoftherawmaterials。IfrawsilkcouldbeimportedfromChinaandIndostandutyfree,thesilkmanufacturersinEnglandcouldgreatlyundersellthoseofbothFranceandItaly。Therewouldbenooccasiontoprohibittheimportationofforeignsilksandvelvets。Thecheapnessoftheirgoodswouldsecuretoourownworkmennotonlythepossessionofthehome,butaverygreatcommandoftheforeignmarket。Eventhetradeinthecommoditiestaxedwouldbecarriedonwithmuchmoreadvantagethanatpresent。Ifthosecommoditiesweredeliveredoutofthepublicwarehouseforforeignexportation,beinginthiscaseexemptedfromalltaxes,thetradeinthemwouldbeperfectlyfree。Thecarryingtradeinallsortsofgoodswouldunderthissystemenjoyeverypossibleadvantage。Ifthosecommoditiesweredeliveredoutforhomeconsumption,theimporternotbeingobligedtoadvancethetaxtillhehadanopportunityofsellinghisgoods,eithertosomedealer,ortosomeconsumer,hecouldalwaysaffordtosellthemcheaperthanifhehadbeenobligedtoadvanceitatthemomentofimportation。Underthesametaxes,theforeigntradeofconsumptioneveninthetaxedcommoditiesmightinthismannerbecarriedonwithmuchmoreadvantagethanitcanbeatpresent。
ItwastheobjectofthefamousexciseschemeofSirRobertWalpoletoestablish,withregardtowineandtobacco,asystemnotveryunlikethatwhichishereproposed。ButthoughthebillwhichwasthenbroughtintoParliamentcomprehendedthosetwocommodities,onlyitwasgenerallysupposedtobemeantasanintroductiontoamoreextensiveschemeofthesamekind,faction,combinedwiththeinterestofsmugglingmerchants,raisedsoviolent,thoughsounjust,aclamouragainstthatbill,thattheministerthoughtpropertodropit,andfromadreadofexcitingaclamourofthesamekind,noneofhissuccessorshavedaredtoresumetheproject。
Thedutiesuponforeignluxuriesimportedforhomeconsumption,thoughtheysometimesfalluponthepoor,fallprincipallyuponpeopleofmiddlingormorethanmiddlingfortune。Suchare,forexample,thedutiesuponforeignwines,uponcoffee,chocolate,tea,sugar,etc。
Thedutiesuponthecheaperluxuriesofhomeproducedestinedforhomeconsumptionfallprettyequallyuponpeopleofallranksinproportiontotheirrespectiveexpense。Thepoorpaythedutiesuponmalt,hops,beer,andale,upontheirownconsumption:therich,uponboththeirownconsumptionandthatoftheirservants。
Thewholeconsumptionoftheinferiorranksofpeople,orofthosebelowthemiddlingrank,itmustbeobserved,isineverycountrymuchgreater,notonlyinquantity,butinvalue,thanthatofthemiddlingandofthoseabovethemiddlingrank。Thewholeexpenseoftheinferiorismuchgreaterthanthatofthesuperiorranks。Inthefirstplace,almostthewholecapitalofeverycountryisannuallydistributedamongtheinferiorranksofpeopleasthewagesofproductivelabour。Secondly,agreatpartoftherevenuearisingfromboththerentoflandandtheprofitsofstockisannuallydistributedamongthesamerankinthewagesandmaintenanceofmenialservants,andotherunproductivelabourers。Thirdly,somepartoftheprofitsofstockbelongstothesamerankasarevenuearisingfromtheemploymentoftheirsmallcapitals。Theamountoftheprofitsannuallymadebysmallshopkeepers,tradesmen,andretailersofallkindsiseverywhereveryconsiderable,andmakesaveryconsiderableportionoftheannualproduce。Fourthly,andlastly,somepartevenoftherentoflandbelongstothesamerank,aconsiderablepartofthosewhoaresomewhatbelowthemiddlingrank,andasmallparteventothelowestrank,commonlabourerssometimespossessinginpropertyanacreortwoofland。Thoughtheexpenseofthoseinferiorranksofpeople,therefore,takingthemindividually,isverysmall,yetthewholemassofit,takingthemcollectively,amountsalwaystobymuchthelargestportionofthewholeexpenseofthesociety;whatremainsoftheannualproduceofthelandandlabourofthecountryfortheconsumptionofthesuperiorranksbeingalwaysmuchless,notonlyinquantity,butinvalue。Thetaxesuponexpense,therefore,whichfallchieflyuponthatofthesuperiorranksofpeople,uponthesmallerportionoftheannualproduce,arelikelytobemuchlessproductivethaneitherthosewhichfallindifferentlyupontheexpenseofallranks,oreventhosewhichfallchieflyuponthatoftheinferiorranks;thaneitherthosewhichfallindifferentlyuponthewholeannualproduce,orthosewhichfallchieflyuponthelargerportionofit。Theexciseuponthematerialsandmanufactureofhome—madefermentedandspirituousliquorsisaccordingly,ofallthedifferenttaxesuponexpense,byfarthemostproductive;andthisbranchoftheexcisefallsverymuch,perhapsprincipally,upontheexpenseofthecommonpeople。Intheyearwhichendedonthe5thofJuly1775,thegrossproduceofthisbranchoftheexciseamountedtoL3,341,8379s。9d。
Itmustalwaysberemembered,however,thatitistheluxuriousandnotthenecessaryexpenseoftheinferiorranksofpeoplethatoughtevertobetaxed。Thefinalpaymentofanytaxupontheirnecessaryexpensewouldfallaltogetheruponthesuperiorranksofpeople;uponthesmallerportionoftheannualproduce,andnotuponthegreater。Suchataxmustinallcaseseitherraisethewagesoflabour,orlessenthedemandforit。Itcouldnotraisethewagesoflabourwithoutthrowingthefinalpaymentofthetaxuponthesuperiorranksofpeople。Itcouldnotlessenthedemandforlabourwithoutlesseningtheannualproduceofthelandandlabourofthecountry,thefundfromwhichalltaxesmustbefinallypaid。Whatevermightbethestatetowhichataxofthiskindreducedthedemandforlabour,itmustalwaysraisewageshigherthantheyotherwisewouldbeinthatstate,andthefinalpaymentofthisenhancementofwagesmustinallcasesfalluponthesuperiorranksofpeople。
Fermentedliquorsbrewed,andspirituousliquorsdistilled,notforsale,butforprivateuse,arenotinGreatBritainliabletoanydutiesofexcise。Thisexemption,ofwhichtheobjectistosaveprivatefamiliesfromtheodiousvisitandexaminationofthetax—gatherer,occasionstheburdenofthosedutiestofallfrequentlymuchlighterupontherichthanuponthepoor。Itisnot,indeed,verycommontodistilforprivateuse,thoughitisdonesometimes。Butinthecountrymanymiddlingandalmostallrichandgreatfamiliesbrewtheirownbeer。Theirstrongbeer,therefore,coststhemeightshillingsabarrellessthanitcoststhecommonbrewer,whomusthavehisprofituponthetaxaswellasuponalltheotherexpensewhichheadvances。Suchfamilies,therefore,mustdrinktheirbeeratleastnineortenshillingsabarrelcheaperthananyliquorofthesamequalitycanbedrunkbythecommonpeople,towhomitiseverywheremoreconvenienttobuytheirbeer,bylittleandlittle,fromthebreweryorthealehouse。Malt,inthesamemanner,thatismadefortheuseofaprivatefamilyisnotliabletothevisitorexaminationofthetax—gatherer;butinthiscasethefamilymustcompoundatsevenshillingsandsixpenceaheadforthetax。Sevenshillingsandsixpenceareequaltotheexciseupontenbushelsofmalt—aquantityfullyequaltowhatallthedifferentmembersofanysoberfamily,men,women,andchildren,areatanaveragelikelytoconsume。Butinrichandgreatfamilies,wherecountryhospitalityismuchpractised,themaltliquorsconsumedbythemembersofthefamilymakebutasmallpartoftheconsumptionofthehouse。Eitheronaccountofthiscomposition,however,orforotherreasons,itisnotnearsocommontomaltastobrewforprivateuse。Itisdifficulttoimagineanyequitablereasonwhythosewhoeitherbrewordistilforprivateuseshouldnotbesubjecttoacompositionofthesamekind。
Agreaterrevenuethanwhatisatpresentdrawnfromalltheheavytaxesuponmalt,beer,andalemightberaised,ithasfrequentlybeensaid,byamuchlightertaxuponmalt,theopportunitiesofdefraudingtherevenuebeingmuchgreaterinabrewerythaninamalt—house,andthosewhobrewforprivateusebeingexemptedfromalldutiesorcompositionforduties,whichisnotthecasewiththosewhomaltforprivateuse。
IntheporterbreweryofLondonaquarterofmaltiscommonlybrewedintomorethantwobarrelsandahalf,sometimesintothreebarrelsofporter。Thedifferenttaxesuponmaltamounttosixshillingsaquarter,thoseuponstrongbeerandaletoeightshillingsabarrel。Intheporterbrewery,therefore,thedifferenttaxesuponmalt,beer,andaleamounttobetweentwenty—sixandthirtyshillingsupontheproduceofaquarterofmalt。Inthecountrybreweryforcommoncountrysaleaquarterofmaltisseldombrewedintolessthantwobarrelsofstrongandonebarrelofsmallbeer,frequentlyintotwobarrelsandahalfofstrongbeer。Thedifferenttaxesuponsmallbeeramounttooneshillingandfourpenceabarrel。Inthecountrybrewery,therefore,thedifferenttaxesuponmalt,beer,andaleseldomamounttolessthantwenty—threeshillingsandfourpence,frequentlytotwenty—sixshillings,upontheproduceofaquarterofmalt。Takingthewholekingdomatanaverage,therefore,thewholeamountofthedutiesuponmalt,beer,andalecannotbeestimatedatlessthantwenty—fourortwenty—fiveshillingsupontheproduceofaquarterofmalt。Butbytakingoffallthedifferentdutiesuponbeerandale,andbytriplingthemalt—tax,orbyraisingitfromsixtoeighteenshillingsuponthequarterofmalt,agreaterrevenue,itissaid,mightberaisedbythissingletaxthanwhatisatpresentdrawnfromallthoseheaviertaxes。
Undertheoldmalttax,indeed,iscomprehendedataxoffourshillingsuponthehogsheadofcyder,andanotheroftenshillingsuponthebarrelofmum。In1774,thetaxuponcyderproducedonlyL30836s。8d。Itprobablyfellsomewhatshortofitsusualamount,allthedifferenttaxesuponcyderhaving,thatyear,producedlessthanordinary。Thetaxuponmum,thoughmuchheavier,isstilllessproductive,onaccountofthesmallerconsumptionofthatliquor。Buttobalancewhatevermaybetheordinaryamountofthosetwotaxes,thereiscomprehendedunderwhatiscalledthecountryexcise,first,theoldexciseofsixshillingsandeightpenceuponthehogsheadofcyder;secondly,aliketaxofsixshillingsandeightpenceuponthehogsheadofverjuice;thirdly,anotherofeightshillingsandninepenceuponthehogsheadofvinegar;and,lastly,afourthtaxofelevenpenceuponthegallonofmeadormetheglin:theproduceofthosedifferenttaxeswillprobablymuchmorethancounterbalancethatofthedutiesimposedbywhatiscalledtheannualmalttaxuponcyderandmum。
Ls。
d。In1772,theoldmalt—taxproduced722,02311
11
Theadditional356,7767
93/4In1773,theoldtaxproduced561,627
371/2
Theadditional278,65015
33/4In1774,theoldtaxproduced624,614
1753/4
Theadditional310,7452
81/2In1775,theoldtaxproduced657,357
081/4
Theadditional323,78512
61/4
4)3,835,58012
03/4
Averageofthesefouryears958,8953
03/16
In1772,thecountryexciseproduced1,243,12853
TheLondonbrewery408,2607
23/4In1773,thecountryexcise1,245,808
33
TheLondonbrewery405,40617
101/2In1774,thecountryexcise1,246,373
1451/2
TheLondonbrewery320,60118
01/4In1775,thecountryexcise1,214,583
61
TheLondonbrewery463,6707
01/4
4)6,547,83219
21/4
Averageofthesefouryears1,636,9584
91/2Towhichaddingtheaveragemalt—tax,or958,895
303/16Thewholeamountofthosedifferenttaxescomesouttobe2,595,85379
11/19
Butbytriplingthemalt—tax,orbyraisingitfromsixtoeighteenshillingsuponthequarterofmalt,thatsingletaxwouldproduce2,876,6859
09/16Asumwhichexceedstheforegoingby280,832
1214/16
Maltisconsumednotonlyinthebreweryofbeerandale,butinthemanufactureofwinesandspirits。Ifthemalttaxweretoberaisedtoeighteenshillingsuponthequarter,itmightbenecessarytomakesomeabatementinthedifferentexciseswhichareimposeduponthoseparticularsortsoflowwinesandspiritsofwhichmaltmakesanypartofthematerials。Inwhatarecalledmaltspiritsitmakescommonlybutathirdpartofthematerials,theothertwo—thirdsbeingeitherrawbarley,orone—thirdbarleyandone—thirdwheat。Inthedistilleryofmaltspirits,boththeopportunityandthetemptationtosmugglearemuchgreaterthaneitherinabreweryorinamalt—house;theopportunityonaccountofthesmallerbulkandgreatervalueofthecommodity,andthetemptationonaccountofthesuperiorheightoftheduties,whichamountto3s。102/3d。*uponthegallonofspirits。
Byincreasingthedutiesuponmalt,andreducingthoseuponthedistillery,boththeopportunitiesandthetemptationtosmugglewouldbediminished,whichmightoccasionastillfurtheraugmentationofrevenue。*Thoughthedutiesdirectlyimposeduponproofspiritsamountonlyto2s。6d。pergallon,theseaddedtothedutiesuponthelowwines,fromwhichtheyaredistilled,amountto3s。102/3d。Bothlowwinesandproofspiritsare,topreventfrauds,nowratedaccordingtowhattheygaugeinthewash。
IthasforsometimepastbeenthepolicyofGreatBritaintodiscouragetheconsumptionofspirituousliquors,onaccountoftheirsupposedtendencytoruinthehealthandtocorruptthemoralsofthecommonpeople。Accordingtothispolicy,theabatementofthetaxesuponthedistilleryoughtnottobesogreatastoreduce,inanyrespect,thepriceofthoseliquors。
Spirituousliquorsmightremainasdearasever,whileatthesametimethewholesomeandinvigoratingliquorsofbeerandalemightbeconsiderablyreducedintheirprice。Thepeoplemightthusbeinpartrelievedfromoneoftheburdensofwhichtheyatpresentcomplainthemost,whileatthesametimetherevenuemightbeconsiderablyaugmented。
TheobjectionsofDr。Davenanttothisalterationinthepresentsystemofexcisedutiesseemtobewithoutfoundation。
Thoseobjectionsare,thatthetax,insteadofdividingitselfasatpresentprettyequallyupontheprofitofthemaltster,uponthatofthebrewer,anduponthatoftheretailer,would,sofarasitaffectedprofit,fallaltogetheruponthatofthemaltster;
thatthemaltstercouldnotsoeasilygetbacktheamountofthetaxintheadvancedpriceofhismaltasthebrewerandretailerintheadvancedpriceoftheirliquor;andthatsoheavyataxuponmaltmightreducetherentandprofitofbarleyland。
Notaxcaneverreduce,foranyconsiderabletime,therateofprofitinanyparticulartradewhichmustalwayskeepitslevelwithothertradesintheneighbourhood。Thepresentdutiesuponmalt,beer,andaledonotaffecttheprofitsofthedealersinthosecommodities,whoallgetbackthetaxwithanadditionalprofitintheenhancedpriceoftheirgoods。Atax,indeed,mayrenderthegoodsuponwhichitisimposedsodearastodiminishtheconsumptionofthem。Buttheconsumptionofmaltisinmaltliquors,andataxofeighteenshillingsuponthequarterofmaltcouldnotwellrenderthoseliquorsdearerthanthedifferenttaxes,amountingtotwenty—fourortwenty—fiveshillings,doatpresent。Thoseliquors,onthecontrary,wouldprobablybecomecheaper,andtheconsumptionofthemwouldbemorelikelytoincreasethantodiminish。
Itisnotveryeasytounderstandwhyitshouldbemoredifficultforthemaltstertogetbackeighteenshillingsintheadvancedpriceofhismaltthanitisatpresentforthebrewertogetbacktwenty—fourortwenty—five,sometimesthirty,shillingsinthatofhisliquor。Themaltster,indeed,insteadofataxofsixshillings,wouldbeobligedtoadvanceoneofeighteenshillingsuponeveryquarterofmalt。Butthebrewerisatpresentobligedtoadvanceataxoftwenty—fourortwenty—five,sometimesthirty,shillingsuponeveryquarterofmaltwhichhebrews。Itcouldnotbemoreinconvenientforthemaltstertoadvancealightertaxthanitisatpresentforthebrewertoadvanceaheavierone。Themaltsterdothnotalwayskeepinhisgranariesastockofmaltwhichitwillrequirealongertimetodisposeofthanthestockofbeerandalewhichthebrewerfrequentlykeepsinhiscellars。Theformer,therefore,mayfrequentlygetthereturnsofhismoneyassoonasthelatter。Butwhateverinconveniencymightarisetothemaltsterfrombeingobligedtoadvanceaheaviertax,itcouldeasilyberemediedbygrantinghimafewmonths’longercreditthanisatpresentcommonlygiventothebrewer。
Nothingcouldreducetherentandprofitofbarleylandwhichdidnotreducethedemandforbarley。Butachangeofsystemwhichreducedthedutiesuponaquarterofmaltbrewedintobeerandalefromtwenty—fourandtwenty—fiveshillingstoeighteenshillingswouldbemorelikelytoincreasethandiminishthatdemand。Therentandprofitofbarleyland,besides,mustalwaysbenearlyequaltothoseofotherequallyfertileandequallywell—cultivatedland。Iftheywereless,somepartofthebarleylandwouldsoonbeturnedtosomeotherpurpose;andiftheyweregreater,morelandwouldsoonbeturnedtotheraisingofbarley。Whentheordinarypriceofanyparticularproduceoflandisatwhatmaybecalledamonopolyprice,ataxuponitnecessarilyreducestherentandprofitofthelandwhichgrowsit。Ataxupontheproduceofthosepreciousvineyardsofwhichthewinefallssomuchshortoftheeffectualdemandthatitspriceisalwaysabovethenaturalproportiontothatoftheproduceofotherequallyfertileandequallywellcultivatedlandwouldnecessarilyreducetherentandprofitofthosevineyards。
Thepriceofthewinesbeingalreadythehighestthatcouldbegotforthequantitycommonlysenttomarket,itcouldnotberaisedhigherwithoutdiminishingthatquantity,andthequantitycouldnotbediminishedwithoutstillgreaterloss,becausethelandscouldnotbeturnedtoanyotherequallyvaluableproduce。
Thewholeweightofthetax,therefore,wouldfallupontherentandprofit—properlyupontherentofthevineyard。Whenithasbeenproposedtolayanynewtaxuponsugar,oursugarplantershavefrequentlycomplainedthatthewholeweightofsuchtaxesfell,notupontheconsumer,butupontheproducer,theyneverhavingbeenabletoraisethepriceoftheirsugarafterthetaxhigherthanitwasbefore。Thepricehad,itseems,beforethetaxbeenamonopolyprice,andtheargumentadducedtoshowthatsugarwasanimpropersubjectoftaxationdemonstrated,perhaps,thatitwasaproperone,thegainsofmonopolists,whenevertheycanbecomeat,beingcertainlyofallsubjectsthemostproper。
Buttheordinarypriceofbarleyhasneverbeenamonopolyprice,andtherentandprofitofbarleylandhaveneverbeenabovetheirnaturalproportiontothoseofotherequallyfertileandequallywell—cultivatedland。Thedifferenttaxeswhichhavebeenimposeduponmalt,beer,andalehaveneverloweredthepriceofbarley,haveneverreducedtherentandprofitofbarleyland。
Thepriceofmalttothebrewerhasconstantlyriseninproportiontothetaxesimposeduponit,andthosetaxes,togetherwiththedifferentdutiesuponbeerandale,haveconstantlyeitherraisedtheprice,orwhatcomestothesamething,reducedthequalityofthosecommoditiestotheconsumer。
Thefinalpaymentofthosetaxeshasfallenconstantlyupontheconsumer,andnotupontheproducer。
Theonlypeoplelikelytosufferbythechangeofsystemhereproposedarethosewhobrewfortheirownprivateuse。Buttheexemptionwhichthissuperiorrankofpeopleatpresentenjoyfromveryheavytaxeswhicharepaidbythepoorlabourerandartificerissurelymostunjustandunequal,andoughttobetakenaway,eventhoughthischangewasnevertotakeplace。Ithasprobablybeentheinterestofthissuperiororderofpeople,however,whichhashithertopreventedachangeofsystemthatcouldnotwellfailbothtoincreasetherevenueandtorelievethepeople。
Besidessuchdutiesasthoseofcustomsandexciseabovementioned,thereareseveralotherswhichaffectthepriceofgoodsmoreunequallyandmoreindirectly。OfthiskindarethedutieswhichinFrencharecalledPeages,whichinoldSaxontimeswerecalledDutiesofPassage,andwhichseemtohavebeenoriginallyestablishedforthesamepurposeasourturnpiketolls,orthetollsuponourcanalsandnavigablerivers,forthemaintenanceoftheroadorofthenavigation。Thoseduties,whenappliedtosuchpurposes,aremostproperlyimposedaccordingtothebulkorweightofthegoods。Astheywereoriginallylocalandprovincialduties,applicabletolocalandprovincialpurposes,theadministrationofthemwasinmostcasesentrustedtotheparticulartown,parish,orlordshipinwhichtheywerelevied,suchcommunitiesbeinginsomewayorothersupposedtobeaccountablefortheapplication。Thesovereign,whoisaltogetherunaccountable,hasinmanycountriesassumedtohimselftheadministrationofthoseduties,andthoughhehasinmostcasesenhancedverymuchtheduty,hehasinmanyentirelyneglectedtheapplication。IftheturnpiketollsofGreatBritainshouldeverbecomeoneoftheresourcesofgovernment,wemaylearn,bytheexampleofmanyothernations,whatwouldprobablybetheconsequence。Suchtollsarenodoubtfinallypaidbytheconsumer;buttheconsumerisnottaxedinproportiontohisexpensewhenhepays,notaccordingtothevalue,butaccordingtothebulkorweightofwhatheconsumes。Whensuchdutiesareimposed,notaccordingtothebulkorweight,butaccordingtothesupposedvalueofthegoods,theybecomeproperlyasortofinlandcustomsorexciseswhichobstructverymuchthemostimportantofallbranchesofcommerce,theinteriorcommerceofthecountry。