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growth of that part of the surplus produce which； in the case of
a free trade； would be exported to Europe。 That of the servants
tends to stunt the natural growth of every part of the produce in
which they choose to deal； of what is destined for home
consumption； as well as of what is destined for exportation； and
consequently to degrade the cultivation of the whole country； and
to reduce the number of its inhabitants。 It tends to reduce the
quantity of every sort of produce； even that of the necessaries
of life； whenever the servants of the company choose to deal in
them； to what those servants can both afford to buy and expect to
sell with such a profit as pleases them。
From the nature of their situation； too； the servants must
be more disposed to support with rigorous severity their own
interest against that of the country which they govern than their
masters can be to support theirs。 The country belongs to their
masters； who cannot avoid having some regard for the interest of
what belongs to them。 But it does not belong to the servants。 The
real interest of their masters； if they were capable of
understanding it； is the same with that of the country； and it is
from ignorance chiefly； and the meanness of mercantile prejudice；
that they ever oppress it。 But the real interest of the servants
is by no means the same with that of the country； and the most
perfect information would not necessarily put an end to their
oppressions。 The regulations accordingly which have been sent out
from Europe； though they have been frequently weak； have upon
most occasions been well…meaning。 More intelligence and perhaps
less good…meaning has sometimes appeared in those established by
the servants in India。 It is a very singular government in which
every member of the administration wishes to get out of the
country； and consequently to have done with the government as
soon as he can； and to whose interest； the day after he has left
it and carried his whole fortune with him； it is perfectly
indifferent though the whole country was swallowed up by an
earthquake。
I mean not； however； by anything which I have here said； to
throw any odious imputation upon the general character of the
servants of the East India Company； and much less upon that of
any particular persons。 It is the system of government； the
situation in which they are placed； that I mean to censure； not
the character of those who have acted in it。 They acted as their
situation naturally directed； and they who have clamoured the
loudest against them would probably not have acted better
themselves。 In war and negotiation； the councils of Madras and
Calcutta have upon several occasions conducted themselves with a
resolution and decisive wisdom which would have done honour to
the senate of Rome in the best days of that republic。 The members
of those councils； however； had been bred to professions very
different from war and polities。 But their situation alone；
without education； experience； or even example； seems to have
formed in them all at once the great qualities which it required；
and to have inspired them both with abilities and virtues which
they themselves could not well know that they possessed。 If upon
some occasions； therefore； it has animated them to actions of
magnanimity which could not well have been expected from them； we
should not wonder if upon others it has prompted them to exploits
of somewhat a different nature。
Such exclusive companies； therefore； are nuisances in every
respect； always more or less inconvenient to the countries in
which they are established； and destructive to those which have
the misfortune to fall under their government。
CHAPTER VIII
Conclusion of the Mercantile System
THOUGH the encouragement of exportation and the
discouragement of importation are the two great engines by which
the mercantile system proposes to enrich every country； yet with
regard to some particular commodities it seems to follow an
opposite plan： to discourage exportation and to encourage
importation。 Its ultimate object； however； it pretends； is always
the same； to enrich the country by an advantageous balance of
trade。 It discourages the exportation of the materials of
manufacture； and of the instruments of trade； in order to give
our own workmen an advantage； and to enable them to undersell
those of other nations in all foreign markets； and by
restraining； in this manner； the exportation of a few
commodities； of no great price； it proposes to occasion a much
greater and more valuable exportation of others。 It encourages
the importation of the materials of manufacture in order that our
own people may be enabled to work them up more cheaply； and
thereby prevent a greater and more valuable importation of the
manufactured commodities。 I do not observe； at least in our
Statute Book； any encouragement given to the importation of the
instruments of trade。 When manufactures have advanced to a
certain pitch of greatness； the fabrication of the instruments of
trade becomes itself the object of a great number of very
important manufactures。 To give any particular encouragement to
the importation of such instruments would interfere too much with
the interest of those manufactures。 Such importation； therefore；
instead of being encouraged； has frequently been prohibited。 Thus
the importation of wool cards； except from Ireland； or when
brought in as wreck or prize goods； was prohibited by the 3rd of
Edward IV； which prohibition was renewed by the 39th of
Elizabeth； and has been continued and rendered perpetual by
subsequent laws。
The importation of the materials of manufacture has
sometimes been encouraged by an exemption from the duties to
which other goods are subject； and sometimes by bounties。
The importation of sheep's wool from several different
countries； of cotton wool from all countries； of undressed flax；
of the greater part of dyeing drugs； of the greater part of
undressed hides from Ireland or the British colonies； of
sealskins from the British Greenland fishery； of pig and bar iron
from the British colonies； as well as of several other materials
of manufacture； has been encouraged by an exemption from all
duties； if properly entered at the custom house。 The private
interest of our merchants and manufacturers may； perhaps； have
extorted from the legislature these exemptions as well as the
greater part of our other commercial regulations。 They are；
however； perfectly just and reasonable； and if； consistently with
the necessities of the state； they could be extended to all the
other materials of manufacture； the public would certainly be a
gainer。
The avidity of our great manufacturers； however； has in some
cases extended these exemptions a good deal beyond what can
justly be considered as the rude materials of their work。 By the
24th George III； c。 46； a small duty of only one penny the pound
was imposed upon the importation of foreign brown linen yam；
instead of much higher duties to which it had been subjected
before； viz。 of sixpence the pound upon sail yarn； of one
shilling the pound upon all French and Dutch yarn； and of two
pounds thirteen shillings and fourpence upon the hundredweight of
all spruce or Muscovia yarn。 But our manufacturers were not long
satisfied with this reduction。 By the 29th of the same king； c。
15； the same law which gave a bounty upon the exportation of
British and Irish linen of which the price did not exceed
eighteenpence the yard； even this small duty upon the importation
of brown linen yarn was taken away。 In the different operations；
however； which are necessary for the preparation of linen yarn； a
good deal more industry is employed than in the subsequent
operation of preparing linen cloth from linen yarn。 To say
nothing of the industry of the flax…growers and flax…dressers；
three or four spinners； at least； are necessary in order to keep
one weaver in constant employment； and more than four…fifths of
the whole quantity of labour necessary for the preparation of
linen cloth is employed in that of linen yarn； but our spinners
are poor people； women commonly scattered about in all different
parts of the country； without support or protection。 It is not by
the sale of their work； but by that of the complete work of the
weavers； that our great master manufacturers make their profits。
As it is their interest to sell the complete manufacture as dear；
so is it to buy the materials as cheap as possible。 By extorting
from the legislature bounties upon the exportation of their own
linen； high duties upon the importation of all foreign linen； and
a total prohibition of the home consumption of some sorts of
French linen； they endeavour to sell their own goods as dear as
possible。 By encouraging the importation of foreign linen yarn；
and thereby bringing it into competition with that which is made
by our own people； they endeavour to buy the work of the poor
spinners as cheap as possible。 They