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。