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importation of foreign goods which secure to them the monopoly of
the home market。 It was probably in imitation of them; and to put
themselves upon a level with those who; they found; were disposed
to oppress them; that the country gentlemen and farmers of Great
Britain in so far forgot the generosity which is natural to their
station as to demand the exclusive privilege of supplying their
countrymen with corn and butcher's meat。 They did not perhaps
take time to consider how much less their interest could be
affected by the freedom of trade than that of the people whose
example they followed。
To prohibit by a perpetual law the importation of foreign
corn and cattle is in reality to enact that the population and
industry of the country shall at no time exceed what the rude
produce of its own soil can maintain。
There seem; however; to be two cases in which it will
generally be advantageous to lay some burden upon foreign for the
encouragement of domestic industry。
The first is; when some particular sort of industry is
necessary for the defence of the country。 The defence of Great
Britain; for example; depends very much upon the number of its
sailors and shipping。 The Act of Navigation; therefore; very
properly endeavours to give the sailors and shipping of Great
Britain the monopoly of the trade of their own country in some
cases by absolute prohibitions and in others by heavy burdens
upon the shipping of foreign countries。 The following are the
principal dispositions of this Act。
First; all ships; of which the owners and three…fourths of
the mariners are not British subjects; are prohibited; upon pain
of forfeiting ship and cargo; from trading to the British
settlements and plantations; or from being employed in the
coasting trade of Great Britain。
Secondly; a great variety of the most bulky articles of
importation can be brought into Great Britain only; either in
such ships as are above described; or in ships of the country
where those goods are purchased; and of which the owners;
masters; and three…fourths of the mariners are of that particular
country; and when imported even in ships of this latter kind;
they are subject to double aliens' duty。 If imported in ships of
any other country; the penalty is forfeiture of ship and goods。
When this act was made; the Dutch were; what they still are; the
great carriers of Europe; and by this regulation they were
entirely excluded from being the carriers to Great Britain; or
from importing to us the goods of any other European country。
Thirdly; a great variety of the most bulky articles of
importation are prohibited from being imported; even in British
ships; from any country but that in which they are produced;
under pains of forfeiting ship and cargo。 This regulation; too;
was probably intended against the Dutch。 Holland was then; as
now; the great emporium for all European goods; and by this
regulation British ships were hindered from loading in Holland
the goods of any other European country。
Fourthly; salt fish of all kinds; whale…fins; whale…bone;
oil; and blubber; not caught by and cured on board British
vessels; when imported into Great Britain; are subjected to
double aliens' duty。 The Dutch; as they are they the principal;
were then the only fishers in Europe that attempted to supply
foreign nations with fish。 By this regulation; a very heavy
burden was laid upon their supplying Great Britain。
When the Act of Navigation was made; though England and
Holland were not actually at war; the most violent animosity
subsisted between the two nations。 It had begun during the
government of the Long Parliament; which first framed this act;
and it broke out soon after in the Dutch wars during that of the
Protector and of Charles the Second。 It is not impossible;
therefore; that some of the regulations of this famous act may
have proceeded from national animosity。 They are as wise;
however; as if they had all been dictated by the most deliberate
wisdom。 National animosity at that particular time aimed at the
very same object which the most deliberate wisdom would have
recommended; the diminution of the naval power of Holland; the
only naval power which could endanger the security of England。
The Act of Navigation is not favourable to foreign commerce;
or to the growth of that opulence which can arise from it。 The
interest of a nation in its commercial relations to foreign
nations is; like that of a merchant with regard to the different
people with whom he deals; to buy as cheap and to sell as dear as
possible。 But it will be most likely to buy cheap; when by the
most perfect freedom of trade it encourages all nations to bring
to it the goods which it has occasion to purchase; and; for the
same reason; it will be most likely to sell dear; when its
markets are thus filled with the greatest number of buyers。 The
Act of Navigation; it is true; lays no burden upon foreign ships
that come to export the produce of British industry。 Even the
ancient aliens' duty; which used to be paid upon all goods
exported as well as imported; has; by several subsequent acts;
been taken off from the greater part of the articles of
exportation。 But if foreigners; either by prohibitions or high
duties; are hindered from coming to sell; they cannot always
afford to come to buy; because coming without a cargo; they must
lose the freight from their own country to Great Britain。 By
diminishing the number of sellers; therefore; we necessarily
diminish that of buyers; and are thus likely not only to buy
foreign goods dearer; but to sell our own cheaper; than if there
was a more perfect freedom of trade。 As defence; however it is of
much more importance than opulence; the Act of Navigation is;
perhaps; the wisest of all the commercial regulations of England。
The second case; in which it will generally be advantageous
to lay some burden upon foreign for the encouragement of domestic
industry is; when some tax is imposed at home upon the produce of
the latter。 In this case; it seems reasonable that an equal tax
should be imposed upon the like produce of the former。 This would
not give the monopoly of the home market to domestic industry;
nor turn towards a particular employment a greater share of the
stock and labour of the country than what would naturally go to
it。 It would only hinder any part of what would naturally go to
it from being turned away by the tax into a less natural
direction; and would leave the competition between foreign and
domestic industry; after the tax; as nearly as possible upon the
same footing as before it。 In Great Britain; when any such tax is
laid upon the produce of domestic industry; it is usual at the
same time; in order to stop the clamorous complaints of our
merchants and manufacturers that they will be undersold at home;
to lay a much heavier duty upon the importation of all foreign
goods of the same kind。
This second limitation of the freedom of trade according to
some people should; upon some occasions; be extended much farther
than to the precise foreign commodities which could come into
competition with those which had been taxed at home。 When the
necessaries of life have been taxed any country; it becomes
proper; they pretend; to tax not only the like necessaries of
life imported from other countries; but all sorts of foreign
goods which can come into competition with anything that is the
produce of domestic industry。 Subsistence; they say; becomes
necessarily dearer in consequence of such taxes; and the price of
labour must always rise with the price of the labourers'
subsistence。 Every commodity; therefore; which is the produce of
domestic industry; though not immediately taxed itself; becomes
dearer in consequence of such taxes; because the labour which
produces it becomes so。 Such taxes; therefore; are really
equivalent; they say; to a tax upon every particular commodity
produced at home。 In order to put domestic upon the same footing
with foreign industry; therefore; it becomes necessary; they
think; to lay some duty upon every foreign commodity equal to
this enhancement of the price of the home commodities with which
it can come into competition。
Whether taxes upon the necessaries of life; such as those in
Great Britain upon soap; salt; leather; candles; etc。;
necessarily raise the price of labour; and consequently that of
all other commodities; I shall consider hereafter when I come to
treat of taxes。 Supposing; however; in the meantime; that they
have this effect; and they have it undoubtedly; this general
enhancement of the price of all commodities; in consequence of
that of labour; is a case which differs in the two following
respects from that of a particular commodity of which the price
was enhanced by a particular tax immediately imposed upon it。
First; it might always be known with great exactness how far
the price of such a commodity could be enhanced by such a tax:
but how far the general enhancement of the price of labour m