Insomesmallstatesdutiessimilartothosepassagedutiesareimposedupongoodscarriedacrosstheterritory,eitherbylandorbywater,fromoneforeigncountrytoanother。Theseareinsomecountriescalledtransit—duties。SomeofthelittleItalianstateswhicharesituateduponthePoandtheriverswhichrunintoitderivesomerevenuefromdutiesofthiskindwhicharepaidaltogetherbyforeigners,andwhich,perhaps,aretheonlydutiesthatonestatecanimposeuponthesubjectsofanotherwithoutobstructinginanyrespecttheindustryorcommerceofitsown。Themostimportanttransit—dutyintheworldisthatleviedbytheKingofDenmarkuponallmerchantshipswhichpassthroughtheSound。
Suchtaxesuponluxuriesasthegreaterpartofthedutiesofcustomsandexcise,thoughtheyallfallindifferentlyuponeverydifferentspeciesofrevenue,andarepaidfinally,orwithoutanyretribution,bywhoeverconsumesthecommoditiesuponwhichtheyareimposed,yettheydonotalwaysfallequallyorproportionablyupontherevenueofeveryindividual。Aseveryman’shumourregulatesthedegreeofhisconsumption,everymancontributesratheraccordingtohishumourthaninproportiontohisrevenue;theprofusecontributemore,theparsimoniousless,thantheirproperproportion。Duringtheminorityofamanofgreatfortunehecontributescommonlyverylittle,byhisconsumption,towardsthesupportofthatstatefromwhoseprotectionhederivesagreatrevenue。Thosewholiveinanothercountrycontributenothing,bytheirconsumption,towardsthesupportofthegovernmentofthatcountryinwhichissituatedthesourceoftheirrevenue。Ifinthislattercountrythereshouldbenoland—tax,noranyconsiderabledutyuponthetransferenceeitherofmovableorofimmovableproperty,asisthecaseinIreland,suchabsenteesmayderiveagreatrevenuefromtheprotectionofagovernmenttothesupportofwhichtheydonotcontributeasingleshilling。Thisinequalityislikelytobegreatestinacountryofwhichthegovernmentisinsomerespectssubordinateanddependentuponthatofsomeother。Thepeoplewhopossessthemostextensivepropertyinthedependentwillinthiscasegenerallychoosetoliveinthegoverningcountry。Irelandispreciselyinthissituation,andwecannot,therefore,wonderthattheproposalofataxuponabsenteesshouldbesoverypopularinthatcountry。Itmight,perhaps,bealittledifficulttoascertaineitherwhatsortorwhatdegreeofabsencewouldsubjectamantobetaxedasanabsentee,oratwhatprecisetimethetaxshouldeitherbeginorend。Ifyouexcept,however,thisverypeculiarsituation,anyinequalityinthecontributionofindividualswhichcanarisefromsuchtaxesismuchmorethancompensatedbytheverycircumstancewhichoccasionsthatinequality—thecircumstancethateveryman’scontributionisaltogethervoluntary,itbeingaltogetherinhispowereithertoconsumeornottoconsumethecommoditytaxed。
Wheresuchtaxes,therefore,areproperlyassessed,anduponpropercommodities,theyarepaidwithlessgrumblingthananyother。Whentheyareadvancedbythemerchantormanufacturer,theconsumer,whofinallypaysthem,sooncomestoconfoundthemwiththepriceofthecommodities,andalmostforgetsthathepaysanytax。
Suchtaxesareormaybeperfectlycertain,ormaybeassessedsoastoleavenodoubtconcerningeitherwhatoughttobepaid,orwhenitoughttobepaid;concerningeitherthequantityorthetimeofpayment。Whateveruncertaintytheremaysometimesbe,eitherinthedutiesofcustomsinGreatBritain,orinotherdutiesofthesamekindinothercountries,itcannotarisefromthenatureofthoseduties,butfromtheinaccurateorunskilfulmannerinwhichthelawthatimposesthemisexpressed。
Taxesuponluxuriesgenerallyare,andalwaysmaybe,paidpiecemeal,orinproportionasthecontributorshaveoccasiontopurchasethegoodsuponwhichtheyareimposed。Inthetimeandmodeofpaymenttheyare,ormaybe,ofalltaxesthemostconvenient。Uponthewhole,suchtaxes,are,perhaps,asagreeabletothethreefirstofthefourgeneralmaximsconcerningtaxationasanyother。Theyoffendineveryrespectagainstthefourth。
Suchtaxes,inproportiontowhattheybringintothepublictreasuryofthestate,alwaystakeoutorkeepoutofthepocketsofthepeoplemorethanalmostanyothertaxes。Theyseemtodothisinallthefourdifferentwaysinwhichitispossibletodoit。
First,thelevyingofsuchtaxes,evenwhenimposedinthemostjudiciousmanner,requiresagreatnumberofcustom—houseandexciseofficers,whosesalariesandperquisitesarearealtaxuponthepeople,whichbringsnothingintothetreasuryofthestate。Thisexpense,however,itmustbeacknowledged,ismoremoderateinGreatBritainthaninmostothercountries。Intheyearwhichendedonthe5thofJuly1775,thegrossproduceofthedifferentduties,underthemanagementofthecommissionersofexciseinEngland,amountedtoL5,507,30818s。8
1/4d。,whichwasleviedatanexpenseoflittlemorethanfiveandahalfpercent。Fromthisgrossproduce,however,theremustbedeductedwhatwaspaidawayinbountiesanddrawbacksupontheexportationofexcisablegoods,whichwillreducethenetproducebelowfivemillions。*Thelevyingofthesaltduty,anexciseduty,butunderadifferentmanagement,ismuchmoreexpensive。
Thenetrevenueofthecustomsdoesnotamounttotwomillionsandahalf,whichisleviedatanexpenseofmorethantenpercentinthesalariesofofficers,andotherincidents。Buttheperquisitesofcustom—houseofficersareeverywheremuchgreaterthantheirsalaries;atsomeportsmorethandoubleortriplethosesalaries。Ifthesalariesofofficers,andotherincidents,therefore,amounttomorethantenpercentuponthenetrevenueofthecustoms,thewholeexpenseoflevyingthatrevenuemayamount,insalariesandperquisitestogether,tomorethantwentyorthirtypercent。Theofficersofexcisereceivefewornoperquisites,andtheadministrationofthatbranchoftherevenue,beingofmorerecentestablishment,isingenerallesscorruptedthanthatofthecustoms,intowhichlengthoftimehasintroducedandauthorizedmanyabuses。Bycharginguponmaltthewholerevenuewhichisatpresentleviedbythedifferentdutiesuponmaltandmaltliquors,asaving,itissupposed,ofmorethanfiftythousandpoundsmightbemadeintheannualexpenseoftheexcise。Byconfiningthedutiesofcustomstoafewsortsofgoods,andbylevyingthosedutiesaccordingtotheexciselaws,amuchgreatersavingmightprobablybemadeintheannualexpenseofthecustoms。*Thenetproduceofthatyear,afterdeductingallexpensesandallowances,amountedtoL4,975,652
19s。6d。
Secondly,suchtaxesnecessarilyoccasionsomeobstructionordiscouragementtocertainbranchesofindustry。Astheyalwaysraisethepriceofthecommoditytaxed,theysofardiscourageitsconsumption,andconsequentlyitsproduction。Ifitisacommodityofhomegrowthormanufacture,lesslabourcomestobeemployedinraisingandproducingit。Ifitisaforeigncommodityofwhichthetaxincreasesinthismannertheprice,thecommoditiesofthesamekindwhicharemadeathomemaythereby,indeed,gainsomeadvantageinthehomemarket,andagreaterquantityofdomesticindustrymaytherebybeturnedtowardpreparingthem。Butthoughthisriseofpriceinaforeigncommoditymayencouragedomesticindustryinoneparticularbranch,itnecessarilydiscouragesthatindustryinalmosteveryother。ThedearertheBirminghammanufacturerbuyshisforeignwine,thecheaperhenecessarilysellsthatpartofhishardwarewithwhich,or,whatcomestothesamething,withthepriceofwhichhebuysit。Thatpartofhishardware,therefore,becomesoflessvaluetohim,andhehaslessencouragementtoworkatit。Thedearertheconsumersinonecountrypayforthesurplusproduceofanother,thecheapertheynecessarilysellthatpartoftheirownsurplusproducewithwhich,or,whatcomestothesamething,withthepriceofwhichtheybuyit。Thatpartoftheirownsurplusproducebecomesoflessvaluetothem,andtheyhavelessencouragementtoincreaseitsquantity。Alltaxesuponconsumablecommodities,therefore,tendtoreducethequantityofproductivelabourbelowwhatitotherwisewouldbe,eitherinpreparingthecommoditiestaxed,iftheyarehomecommodities,orinpreparingthosewithwhichtheyarepurchased,iftheyareforeigncommodities。Suchtaxes,too,alwaysalter,moreorless,thenaturaldirectionofnationalindustry,andturnitintoachannelalwaysdifferentfrom,andgenerallylessadvantageousthanthatinwhichitwouldhaverunofitsownaccord。
Thirdly,thehopeofevadingsuchtaxesbysmugglinggivesfrequentoccasiontoforfeituresandotherpenaltieswhichentirelyruinthesmuggler;apersonwho,thoughnodoubthighlyblamableforviolatingthelawsofhiscountry,isfrequentlyincapableofviolatingthoseofnaturaljustice,andwouldhavebeen,ineveryrespect,anexcellentcitizenhadnotthelawsofhiscountrymadethatacrimewhichnaturenevermeanttobeso。
Inthosecorruptedgovernmentswherethereisatleastageneralsuspicionofmuchunnecessaryexpense,andgreatmisapplicationofthepublicrevenue,thelawswhichguarditarelittlerespected。Notmanypeoplearescrupulousaboutsmugglingwhen,withoutperjury,theycanfindanyeasyandsafeopportunityofdoingso。Topretendtohaveanyscrupleaboutbuyingsmuggledgoods,thoughamanifestencouragementtotheviolationoftherevenuelaws,andtotheperjurywhichalmostalwaysattendsit,wouldinmostcountriesberegardedasoneofthosepedanticpiecesofhypocrisywhich,insteadofgainingcreditwithanybody,serveonlytoexposethepersonwhoaffectstopractisethemtothesuspicionofbeingagreaterknavethanmostofhisneighbours。Bythisindulgenceofthepublic,thesmugglerisoftenencouragedtocontinueatradewhichheisthustaughttoconsiderasinsomemeasureinnocent,andwhentheseverityoftherevenuelawsisreadytofalluponhim,heisfrequentlydisposedtodefendwithviolencewhathehasbeenaccustomedtoregardashisjustproperty。Frombeingatfirst,perhaps,ratherimprudentthancriminal,heatlasttoooftenbecomesoneofthehardiestandmostdeterminedviolatorsofthelawsofsociety。Bytheruinofthesmuggler,hiscapital,whichhadbeforebeenemployedinmaintainingproductivelabour,isabsorbedeitherintherevenueofthestateorinthatoftherevenueofficer,andisemployedinmaintainingunproductive,tothediminutionofthegeneralcapitalofthesocietyandoftheusefulindustrywhichitmightotherwisehavemaintained。
Fourthly,suchtaxes,bysubjectingatleastthedealersinthetaxedcommoditiestothefrequentvisitsandodiousexaminationofthetax—gatherers,exposethemsometimes,nodoubt,tosomedegreeofoppression,andalwaystomuchtroubleandvexation;andthoughvexation,ashasalreadybeensaid,isnot,strictlyspeaking,expense,itiscertainlyequivalenttotheexpenseatwhicheverymanwouldbewillingtoredeemhimselffromit。Thelawsofexcise,thoughmoreeffectualforthepurposeforwhichtheywereinstituted,are,inthisrespect,morevexatiousthanthoseofthecustoms。Whenamerchanthasimportedgoodssubjecttocertaindutiesofcustoms,whenhehaspaidthoseduties,andlodgedthegoodsinhiswarehouse,heisnotinmostcasesliabletoanyfurthertroubleorvexationfromthecustom—houseofficer。Itisotherwisewithgoodssubjecttodutiesofexcise。Thedealershavenorespitefromthecontinualvisitsandexaminationoftheexciseofficers。Thedutiesofexciseare,uponthisaccount,moreunpopularthanthoseofthecustoms;andsoaretheofficerswholevythem。Thoseofficers,itispretended,thoughingeneral,perhaps,theydotheirdutyfullyaswellasthoseofthecustoms,yetasthatdutyobligesthemtobefrequentlyverytroublesometosomeoftheirneighbours,commonlycontractacertainhardnessofcharacterwhichtheothersfrequentlyhavenot。Thisobservation,however,mayveryprobablybethemeresuggestionoffraudulentdealerswhosesmugglingiseitherpreventedordetectedbytheirdiligence。
Theinconveniencies,however,whichare,perhaps,insomedegreeinseparablefromtaxesuponconsumablecommodities,fallaslightuponthepeopleofGreatBritainasuponthoseofanyothercountryofwhichthegovernmentisnearlyasexpensive。Ourstateisnotperfect,andmightbemended,butitisasgoodorbetterthanthatofmostofourneighbours。
Inconsequenceofthenotionthatdutiesuponconsumablegoodsweretaxesupontheprofitsofmerchants,thosedutieshave,insomecountries,beenrepeateduponeverysuccessivesaleofthegoods。Iftheprofitsofthemerchantimporterormerchantmanufacturerweretaxed,equalityseemedtorequirethatthoseofallthemiddlebuyerswhointervenedbetweeneitherofthemandtheconsumershouldlikewisebetaxed。ThefamousalcavalaofSpainseemstohavebeenestablisheduponthisprinciple。Itwasatfirstataxoftenpercent,afterwardsoffourteenpercent,andisatpresentofonlysixpercentuponthesaleofeverysortofpropertywhethermovableorimmovable,anditisrepeatedeverytimethepropertyissold。Thelevyingofthistaxrequiresamultitudeofrevenueofficerssufficienttoguardthetransportationofgoods,notonlyfromoneprovincetoanother,butfromoneshoptoanother。Itsubjectsnotonlythedealersinsomesortsofgoods,butthoseinallsorts,everyfarmer,everymanufacturer,everymerchantandshopkeeper,tothecontinualvisitsandexaminationofthetax—gatherers。Throughthegreaterpartofacountryinwhichataxofthiskindisestablishednothingcanbeproducedfordistantsale。Theproduceofeverypartofthecountrymustbeproportionedtotheconsumptionoftheneighborhood。Itistothealcavala,accordingly,thatUstaritzimputestheruinofthemanufacturesofSpain。Hemighthaveimputedtoitlikewisethedeclensionofagriculture,itbeingimposednotonlyuponmanufactures,butupontherudeproduceoftheland。
InthekingdomofNaplesthereisasimilartaxofthreepercentuponthevalueofallcontracts,andconsequentlyuponthatofallcontractsofsale。ItisbothlighterthantheSpanishtax,andthegreaterpartoftownsandparishesareallowedtopayacompositioninlieuofit。Theylevythiscompositioninwhatmannertheyplease,generallyinawaythatgivesnointerruptiontotheinteriorcommerceoftheplace。TheNeapolitantax,therefore,isnotnearsoruinousastheSpanishone。
Theuniformsystemoftaxationwhich,withafewexceptionsofnogreatconsequence,takesplaceinallthedifferentpartsoftheUnitedKingdomofGreatBritain,leavestheinteriorcommerceofthecountry,theinlandandcoastingtrade,almostentirelyfree。Theinlandtradeisalmostperfectlyfree,andthegreaterpartofgoodsmaybecarriedfromoneendofthekingdomtotheotherwithoutrequiringanypermitorlet—pass,withoutbeingsubjecttoquestion,visit,orexaminationfromtherevenueofficers。Thereareafewexceptions,buttheyaresuchascangivenointerruptiontoanyimportantbranchoftheinlandcommerceofthecountry。Goodscarriedcoastwise,indeed,requirecertificatesorcoast—cockets。Ifyouexceptcoals,however,therestarealmostallduty—free。Thisfreedomofinteriorcommerce,theeffectoftheuniformityofthesystemoftaxation,isperhapsoneoftheprincipalcausesoftheprosperityofGreatBritain,everygreatcountrybeingnecessarilythebestandmostextensivemarketforthegreaterpartoftheproductionsofitsownindustry。Ifthesamefreedom,inconsequenceofthesameuniformity,couldbeextendedtoIrelandandtheplantations,boththegrandeurofthestateandtheprosperityofeverypartoftheempirewouldprobablybestillgreaterthanatpresent。
InFrance,thedifferentrevenuelawswhichtakeplaceinthedifferentprovincesrequireamultitudeofrevenueofficerstosurroundnotonlythefrontiersofthekingdom,butthoseofalmosteachparticularprovince,inordereithertopreventtheimportationofcertaingoods,ortosubjectittothepaymentofcertainduties,tothenosmallinterruptionoftheinteriorcommerceofthecountry。Someprovincesareallowedtocompoundforthegabelleorsalt—tax。Othersareexemptedfromitaltogether。Someprovincesareexemptedfromtheexclusivesaleoftobacco,whichthefarmers—generalenjoythroughthegreaterpartofthekingdom。Theaides,whichcorrespondtotheexciseinEngland,areverydifferentindifferentprovinces。Someprovincesareexemptedfromthem,andpayacompositionorequivalent。Inthoseinwhichtheytakeplaceandareinfarmtherearemanylocaldutieswhichdonotextendbeyondaparticulartownordistrict。Thetraites,whichcorrespondtoourcustoms,dividethekingdomintothreegreatparts;first,theprovincessubjecttothetariffof1664,whicharecalledtheprovincesofthefivegreatfarms,andunderwhicharecomprehendedPicardy,Normandy,andthegreaterpartoftheinteriorprovincesofthekingdom;secondly,theprovincessubjecttothetariffof1667,whicharecalledtheprovincesreckonedforeign,andunderwhicharecomprehendedthegreaterpartofthefrontierprovinces;and,thirdly,thoseprovinceswhicharesaidtobetreatedasforeign,orwhich,becausetheyareallowedafreecommercewithforeigncountries,areintheircommercewithotherprovincesofFrancesubjectedtothesamedutiesasotherforeigncountries。TheseareAlsace,thethreebishopricsofMetz,Toul,andVerdun,andthethreecitiesofDunkirk,Bayonne,andMarseilles。Bothintheprovincesofthefivegreatfarms(calledsoonaccountofanancientdivisionofthedutiesofcustomsintofivegreatbranches,eachofwhichwasoriginallythesubjectofaparticularfarm,thoughtheyarenowallunitedintoone),andinthosewhicharesaidtobereckonedforeign,therearemanylocaldutieswhichdonotextendbeyondaparticulartownordistrict。Therearesomesuchevenintheprovinceswhicharesaidtobetreatedasforeign,particularlyinthecityofMarseilles。Itisunnecessarytoobservehowmuchboththerestraintsupontheinteriorcommerceofthecountryandthenumberoftherevenueofficersmustbemultipliedinordertoguardthefrontiersofthosedifferentprovincesanddistrictswhicharesubjecttosuchdifferentsystemsoftaxation。
Overandabovethegeneralrestraintsarisingfromthiscomplicatedsystemofrevenuelaws,thecommerceofwine,aftercornperhapsthemostimportantproductionofFrance,isinthegreaterpartoftheprovincessubjecttoparticularrestraints,arisingfromthefavourwhichhasbeenshowntothevineyardsofparticularprovincesanddistricts,abovethoseofothers。Theprovincesmostfamousfortheirwines,itwillbefound,I
believe,arethoseinwhichthetradeinthatarticleissubjecttothefewestrestraintsofthiskind。Theextensivemarketwhichsuchprovincesenjoy,encouragesgoodmanagementbothinthecultivationoftheirvineyards,andinthesubsequentpreparationoftheirwines。
SuchvariousandcomplicatedrevenuelawsarenotpeculiartoFrance。ThelittleduchyofMilanisdividedintosixprovinces,ineachofwhichthereisadifferentsystemoftaxationwithregardtoseveraldifferentsortsofconsumablegoods。ThestillsmallerterritoriesoftheDukeofParmaaredividedintothreeorfour,eachofwhichhas,inthesamemanner,asystemofitsown。Undersuchabsurdmanagement,nothingbutthegreatfertilityofthesoilandhappinessoftheclimatecouldpreservesuchcountriesfromsoonrelapsingintotheloweststateofpovertyandbarbarism。
Taxesuponconsumablecommoditiesmayeitherbeleviedbyanadministrationofwhichtheofficersareappointedbygovernmentandareimmediatelyaccountabletogovernment,ofwhichtherevenuemustinthiscasevaryfromyeartoyearaccordingtotheoccasionalvariationsintheproduceofthetax,ortheymaybeletinfarmforarentcertain,thefarmerbeingallowedtoappointhisownofficers,who,thoughobligedtolevythetaxinthemannerdirectedbythelaw,areunderhisimmediateinspection,andareimmediatelyaccountabletohim。Thebestandmostfrugalwayoflevyingataxcanneverbebyfarm。Overandabovewhatisnecessaryforpayingthestipulatedrent,thesalariesoftheofficers,andthewholeexpenseofadministration,thefarmermustalwaysdrawfromtheproduceofthetaxacertainprofitproportionedatleasttotheadvancewhichhemakes,totheriskwhichheruns,tothetroublewhichheisat,andtotheknowledgeandskillwhichitrequirestomanagesoverycomplicatedaconcern。Government,byestablishinganadministrationundertheirownimmediateinspectionofthesamekindwiththatwhichthefarmerestablishes,mightatleastsavethisprofit,whichisalmostalwaysexorbitant。Tofarmanyconsiderablebranchofthepublicrevenuerequireseitheragreatcapitaloragreatcredit;circumstanceswhichwouldalonerestrainthecompetitionforsuchanundertakingtoaverysmallnumberofpeople。Ofthefewwhohavethiscapitalorcredit,astillsmallernumberhavethenecessaryknowledgeorexperience;
anothercircumstancewhichrestrainsthecompetitionstillfurther。Theveryfew,whoareinconditiontobecomecompetitors,finditmorefortheirinteresttocombinetogether;
tobecomeco—partnersinsteadofcompetitors,andwhenthefarmissetuptoauction,tooffernorentbutwhatismuchbelowtherealvalue。Incountrieswherethepublicrevenuesareinfarm,thefarmersaregenerallythemostopulentpeople。Theirwealthwouldaloneexcitethepublicindignation,andthevanitywhichalmostalwaysaccompaniessuchupstartfortunes,thefoolishostentationwithwhichtheycommonlydisplaythatwealth,excitesthatindignationstillmore。
Thefarmersofthepublicrevenueneverfindthelawstooseverewhichpunishanyattempttoevadethepaymentofatax。
Theyhavenobowelsforthecontributors,whoarenottheirsubjects,andwhoseuniversalbankruptcy,ifitshouldhappenthedayaftertheirfarmisexpired,wouldnotmuchaffecttheirinterest。Inthegreatestexigenciesofthestate,whentheanxietyofthesovereignfortheexactpaymentofhisrevenueisnecessarilythegreatest,theyseldomfailtocomplainthatwithoutlawsmorerigorousthanthosewhichactuallytakeplace,itwillbeimpossibleforthemtopayeventheusualrent。Inthosemomentsofpublicdistresstheirdemandscannotbedisputed。Therevenuelaws,therefore,becomegraduallymoreandmoresevere。Themostsanguinaryarealwaystobefoundincountrieswherethegreaterpartofthepublicrevenueisinfarm;themildest,incountrieswhereitisleviedundertheimmediateinspectionofthesovereign。Evenabadsovereignfeelsmorecompassionforhispeoplethancaneverbeexpectedfromthefarmersofhisrevenue。Heknowsthatthepermanentgrandeurofhisfamilydependsupontheprosperityofhispeople,andhewillneverknowinglyruinthatprosperityforthesakeofanymomentaryinterestofhisown。Itisotherwisewiththefarmersofhisrevenue,whosegrandeurmayfrequentlybetheeffectoftheruin,andnotoftheprosperityofhispeople。
Ataxissometimesnotonlyfarmedforacertainrent,butthefarmerhas,besides,themonopolyofthecommoditytaxed。InFrance,thedutiesupontobaccoandsaltareleviedinthismanner。Insuchcasesthefarmer,insteadofone,leviestwoexorbitantprofitsuponthepeople;theprofitofthefarmer,andthestillmoreexorbitantoneofthemonopolist。Tobaccobeingaluxury,everymanisallowedtobuyornottobuyashechooses。
Butsaltbeinganecessary,everymanisobligedtobuyofthefarmeracertainquantityofit;because,ifhedidnotbuythisquantityofthefarmer,hewould,itispresumed,buyitofsomesmuggler。Thetaxesuponbothcommoditiesareexorbitant。Thetemptationtosmuggleconsequentlyistomanypeopleirresistible,whileatthesametimetherigourofthelaw,andthevigilanceofthefarmer’sofficers,rendertheyieldingtothattemptationalmostcertainlyruinous。Thesmugglingofsaltandtobaccosendseveryyearseveralhundredpeopletothegalleys,besidesaveryconsiderablenumberwhomitsendstothegibbet。Thosetaxesleviedinthismanneryieldaveryconsiderablerevenuetogovernment。In1767,thefarmoftobaccowasletfortwenty—twomillionsfivehundredandforty—onethousandtwohundredandseventy—eightlivresayear。Thatofsalt,forthirty—sixmillionsfourhundredandninety—fourthousandfourhundredandfourlivres。Thefarminbothcaseswastocommencein1768,andtolastforsixyears。Thosewhoconsiderthebloodofthepeopleasnothingincomparisonwiththerevenueoftheprince,mayperhapsapproveofthismethodoflevyingtaxes。Similartaxesandmonopoliesofsaltandtobaccohavebeenestablishedinmanyothercountries;particularlyintheAustrianandPrussiandominions,andinthegreaterpartofthestatesofItaly。
InFrance,thegreaterpartoftheactualrevenueofthecrownisderivedfromeightdifferentsources;thetaille,thecapitation,thetwovingtiemes,thegabelles,theaides,thetraites,thedomaine,andthefarmoftobacco。Thefivelastare,inthegreaterpartoftheprovinces,underfarm。Thethreefirstareeverywhereleviedbyanadministrationundertheimmediateinspectionanddirectionofgovernment,anditisuniversallyacknowledgedthat,inproportiontowhattheytakeoutofthepocketsofthepeople,theybringmoreintothetreasuryoftheprincethantheotherfive,ofwhichtheadministrationismuchmorewastefulandexpensive。
ThefinancesofFranceseem,intheirpresentstate,toadmitofthreeveryobviousreformations。First,byabolishingthetailleandthecapitation,andbyincreasingthenumberofvingtiemes,soastoproduceanadditionalrevenueequaltotheamountofthoseothertaxes,therevenueofthecrownmightbepreserved;theexpenseofcollectionmightbemuchdiminished;
thevexationoftheinferiorranksofpeople,whichthetailleandcapitationoccasion,mightbeentirelyprevented;andthesuperiorranksmightnotbemoreburdenedthanthegreaterpartofthemareatpresent。Thevingtieme,Ihavealreadyobserved,isataxverynearlyofthesamekindwithwhatiscalledtheland—taxofEngland。Theburdenofthetaille,itisacknowledged,fallsfinallyupontheproprietorsofland;andasthegreaterpartofthecapitationisassesseduponthosewhoaresubjecttothetailleatsomuchapoundofthatothertax,thefinalpaymentofthegreaterpartofitmustlikewisefalluponthesameorderofpeople。Thoughthenumberofthevingtiemes,therefore,wasincreasedsoastoproduceanadditionalrevenueequaltotheamountofboththosetaxes,thesuperiorranksofpeoplemightnotbemoreburdenedthantheyareatpresent。Manyindividualsnodoubtwould,onaccountofthegreatinequalitieswithwhichthetailleiscommonlyassessedupontheestatesandtenantsofdifferentindividuals。Theinterestandoppositionofsuchfavouredsubjectsaretheobstaclesmostlikelytopreventthisoranyotherreformationofthesamekind。Secondly,byrenderingthegabelle,theaides,thetraites,thetaxesupontobacco,allthedifferentcustomsandexcises,uniforminallthedifferentpartsofthekingdom,thosetaxesmightbeleviedatmuchlessexpense,andtheinteriorcommerceofthekingdommightberenderedasfreeasthatofEngland。Thirdly,andlastly,bysubjectingallthosetaxestoanadministrationundertheimmediateinspectionanddirectionofgovernment,theexorbitantprofitsofthefarmers—generalmightbeaddedtotherevenueofthestate。Theoppositionarisingfromtheprivateinterestofindividualsislikelytobeaseffectualforpreventingthetwolastasthefirst—mentionedschemeofreformation。
TheFrenchsystemoftaxationseems,ineveryrespect,inferiortotheBritish。InGreatBritaintenmillionssterlingareannuallylevieduponlessthaneightmillionsofpeoplewithoutitsbeingpossibletosaythatanyparticularorderisoppressed。FromthecollectionsoftheAbbeExpilly,andtheobservationsoftheauthoroftheEssayuponlegislationandcommerceofcorn,itappearsprobablethatFrance,includingtheprovincesofLorraineandBar,containsabouttwenty—threeortwenty—fourmillionsofpeoplethreetimesthenumberperhapscontainedinGreatBritain。ThesoilandclimateofFrancearebetterthanthoseofGreatBritain。Thecountryhasbeenmuchlongerinastateofimprovementandcultivation,andis,uponthataccount,betterstockedwithallthosethingswhichitrequiresalongtimetoraiseupandaccumulate,suchasgreattowns,andconvenientandwell—builthouses,bothintownandcountry。WiththeseadvantagesitmightbeexpectedthatinFrancearevenueofthirtymillionsmightbeleviedforthesupportofthestatewithaslittleinconveniencyasarevenueoftenmillionsisinGreatBritain。In1765and1766,thewholerevenuepaidintothetreasuryofFrance,accordingtothebest,though,Iacknowledge,veryimperfect,accountswhichIcouldgetofit,usuallyrunbetween308and325millionsoflivres;thatis,itdidnotamounttofifteenmillionssterling;notthehalfofwhatmighthavebeenexpectedhadthepeoplecontributedinthesameproportiontotheirnumbersasthepeopleofGreatBritain。ThepeopleofFrance,however,itisgenerallyacknowledged,aremuchmoreoppressedbytaxesthanthepeopleofGreatBritain。France,however,iscertainlythegreatempireinEuropewhich,afterthatofGreatBritain,enjoysthemildestandmostindulgentgovernment。
InHollandtheheavytaxesuponthenecessariesoflifehaveruined,itissaid,theirprincipalmanufactures,andarelikelytodiscouragegraduallyeventheirfisheriesandtheirtradeinshipbuilding。ThetaxesuponthenecessariesoflifeareinconsiderableinGreatBritain,andnomanufacturehashithertobeenruinedbythem。TheBritishtaxeswhichbearhardestonmanufacturesaresomedutiesupontheimportationofrawmaterials,particularlyuponthatofrawsilk。Therevenueofthestates—generalandofthedifferentcities,however,issaidtoamounttomorethanfivemillionstwohundredandfiftythousandpoundssterling;andastheinhabitantsoftheUnitedProvincescannotwellbesupposedtoamounttomorethanathirdpartofthoseofGreatBritain,theymust,inproportiontotheirnumber,bemuchmoreheavilytaxed。
Afterallthepropersubjectsoftaxationhavebeenexhausted,iftheexigenciesofthestatestillcontinuetorequirenewtaxes,theymustbeimposeduponimproperones。Thetaxesuponthenecessariesoflife,therefore,thewisdomofthatrepublicwhich,inordertoacquireandtomaintainitsindependency,has,inspiteofitsgreatfrugality,beeninvolvedinsuchexpensivewarsashaveobligedittocontractgreatdebts。ThesingularcountriesofHollandandZeeland,besides,requireaconsiderableexpenseeventopreservetheirexistence,ortopreventtheirbeingswallowedupbythesea,whichmusthavecontributedtoincreaseconsiderablytheloadoftaxesinthosetwoprovinces。TherepublicanformofgovernmentseemstobetheprincipalsupportofthepresentgrandeurofHolland。Theownersofgreatcapitals,thegreatmercantilefamilies,havegenerallyeithersomedirectshareorsomeindirectinfluenceintheadministrationofthatgovernment。Forthesakeoftherespectandauthoritywhichtheyderivefromthissituation,theyarewillingtoliveinacountrywheretheircapital,iftheyemployitthemselves,willbringthemlessprofit,andiftheylendittoanother,lessinterest;andwheretheverymoderaterevenuewhichtheycandrawfromitwillpurchaselessofthenecessariesandconveniencesoflifethaninanyotherpartofEurope。Theresidenceofsuchwealthypeoplenecessarilykeepsalive,inspiteofalldisadvantages,acertaindegreeofindustryinthecountry。Anypubliccalamitywhichshoulddestroytherepublicanformofgovernment,whichshouldthrowthewholeadministrationintothehandsofnoblesandofsoldiers,whichshouldannihilatealtogethertheimportanceofthosewealthymerchants,wouldsoonrenderitdisagreeabletothemtoliveinacountrywheretheywerenolongerlikelytobemuchrespected。
Theywouldremoveboththeirresidencesandtheircapitalstosomeothercountry,andtheindustryandcommerceofHollandwouldsoonfollowthecapitalswhichsupportedthem。
ChapterIII
OfPublicDebtsINthatrudestateofsocietywhichprecedestheextensionofcommerceandtheimprovementofmanufactures,whenthoseexpensiveluxurieswhichcommerceandmanufacturescanaloneintroducearealtogetherunknown,thepersonwhopossessesalargerevenue,IhaveendeavouredtoshowinthethirdbookofthisInquiry,canspendorenjoythatrevenueinnootherwaythanbymaintainingnearlyasmanypeopleasitcanmaintain。A
largerevenuemayatalltimesbesaidtoconsistinthecommandofalargequantityofthenecessariesoflife。Inthatrudestateofthingsitiscommonlypaidinalargequantityofthosenecessaries,inthematerialsofplainfoodandcoarseclothing,incornandcattle,inwoolandrawhides。Whenneithercommercenormanufacturesfurnishanythingforwhichtheownercanexchangethegreaterpartofthosematerialswhichareoverandabovehisownconsumption,hecandonothingwiththesurplusbutfeedandclothenearlyasmanypeopleasitwillfeedandclothe。
Ahospitalityinwhichthereisnoluxury,andaliberalityinwhichthereisnoostentation,occasion,inthissituationofthings,theprincipalexpensesoftherichandthegreat。Butthese,Ihavelikewiseendeavouredtoshowinthesamebook,areexpensesbywhichpeoplearenotveryapttoruinthemselves。
Thereisnot,perhaps,anyselfishpleasuresofrivolousofwhichthepursuithasnotsometimesruinedevensensiblemen。Apassionforcock—fightinghasruinedmany。Buttheinstances,Ibelieve,arenotverynumerousofpeoplewhohavebeenruinedbyahospitalityorliberalityofthiskind,thoughthehospitalityofluxuryandtheliberalityofostentationhaveruinedmany。Amongourfeudalancestors,thelongtimeduringwhichestatesusedtocontinueinthesamefamilysufficientlydemonstratesthegeneraldispositionofpeopletolivewithintheirincome。Thoughtherustichospitalityconstantlyexercisedbythegreatland—holdersmaynot,tousinthepresenttimes,seemconsistentwiththatorderwhichweareapttoconsiderasinseparablyconnectedwithgoodeconomy,yetwemustcertainlyallowthemtohavebeenatleastsofarfrugalasnotcommonlytohavespenttheirwholeincome。Apartoftheirwoolandrawhidestheyhadgenerallyanopportunityofsellingformoney。Somepartofthismoney,perhaps,theyspentinpurchasingthefewobjectsofvanityandluxurywithwhichthecircumstancesofthetimescouldfurnishthem;butsomepartofittheyseemcommonlytohavehoarded。
Theycouldnotwell,indeed,doanythingelsebuthoardwhatevermoneytheysaved。Totradewasdisgracefultoagentleman,andtolendmoneyatinterest,whichatthattimewasconsideredasusuryandprohibitedbylaw,wouldhavebeenstillmoreso。Inthosetimesofviolenceanddisorder,besides,itwasconvenienttohaveahoardofmoneyathand,thatincasetheyshouldbedrivenfromtheirownhometheymighthavesomethingofknownvaluetocarrywiththemtosomeplaceofsafety。Thesameviolencewhichmadeitconvenienttohoardmadeitequallyconvenienttoconcealthehoard。Thefrequencyoftreasure—trove,oroftreasurefoundofwhichnoownerwasknown,sufficientlydemonstratesthefrequencyinthosetimesbothofhoardingandofconcealingtheboard。Treasure—trovewasthenconsideredasanimportantbranchoftherevenueofthesovereign。Allthetreasure—troveofthekingdomwouldscarceperhapsinthepresenttimesmakeanimportantbranchoftherevenueofaprivategentlemanofagoodestate。