of some principal kinds of their manufacture. Upon brown Osnaburgs and the ravenducks fabricated in imitation of those of Russia, the bounty was threehalfpence per yard, when the value of these goods was only sixpence per yard. One of the means lately adopted by linen manufacturers, who export their goods, is to keep at Liverpool ready-packed bales of their various fabrics suitable for several foreign markets; and upon receiving intelligence from any one of these that prices have advanced, supplies of the ready-prepared goods are ordered for shipment out of stocks lying at Liverpool. The importance to the exporters of sending goods to a distant market, immediately upon hearing that they are in demand, is greater than most people could on first thought suppose. In this respect the manufacturers of Great Britain, who supply the markets of America, are so favorably situated as to secure for them no small advantage over the exporters from the continent of Europe.

That it is highly desirable to secure a market for the produce resulting from the advantageous employment of capital and labour, seems unquestionable. But employments, that necessarily require bounties or restrictions to secure their continuance, cannot be advantageous; and even were this doubtful, which is not here admitted, it cannot be just that, at the expense of all classes in the society, a market should be secured for the benefit of that one class which is engaged in providing

goods so especially favored. In consequence of the reduction in the price of linen goods since the termination of the last war, the bounty had become excessive on the common qualities, as compared with their value. In foreign countries the use of the lowest qualities of German linens was almost superseded, and thus far did the bounty effect what was probably one of its objects. But as a burden on Great Britain, the amount paid for bounty was great, and at the same time that expense was not alone deserving of consideration. The very low price at which the most ordinary qualities of British linens could be afforded abroad, in consequence of the high rate of bounty on their exportation from this country, had caused them almost to supersede also the coarse qualities of British calicoes upon which no bounty on exportation was required. Thus, in addition to the tax for the payment of a bounty on linen, one class of British manufacturers was directly subjected to an injury in order to confer a boon upon another.

It was intended to include the bounty on Britishmade sailcloth in the first act of Parliament withdrawing that on the exportation of linens, but the words of the enactment were not sufficiently comprehensive. In the first year of the reduction of the bounty on linens, a tenth part of that on sailcloth was kept back by the Commissioners of the Customs; but after reference made to the law officers of the Crown, the part withheld was paid

to the exporters. In the subsequent act of Parliament regulating anew the mode of abolition of the bounty on linens, one-half of that on sailcloth exported was abolished in the month of January after passing the act, and the whole bounty on sailcloth, as well as on linens, is to cease in three years afterwards.

Before concluding this essay, it may be proper to advert to the new law for the admission of thrown silk into this country. The duties are considerably reduced; that on organzine formerly five shillings per pound, being now only three shillings and sixpence. Other kinds, known by the terms of tram and singles, are subject to lower rates of duty in proportion. The unusual part of this law consists in allowing a certificate of the duty paid on importation of thrown silk to entitle the importer, or his nominee, to receive back an equal sum as a bounty on British silk manufactures of the same weight when exported. And this whether the exported goods be the produce of silk brought to this country in a thrown state, or of raw silk imported and thrown in Great Britain.

Let it be supposed that, before this law, several parties were in the practice of shipping British manufactured silks to a foreign market; if these exportations afforded a result not prejudicial, there will now be found other exporters either in the holders of certificates of duties paid on foreign

thrownsilk, or in their nominees. It cannot be supposed that the possessors of certificates will hesitate to recover back such duties as the law concedes, provided that these possessors suffer no prejudice from becoming exporters to an extent equal to the recovery back of duty paid on foreign thrown silk. If they themselves do not become exporters of silk manufactures, they will sell their certificates to those persons who are.

The result will probably turn out nearly as follows:-The government will derive no revenue from the duty, because its whole amount will be repaid to exporters of British manufactured silks. The importers of foreign thrown silk will in fact pay a duty that is almost nominal, for what is first taken from them will be returned either as bounty on goods which they themselves send abroad, or as the price of their certificates which can be sold to exporters. The duty will in consequence afford little or no protection (as it is called) to the silk throwsters. It had been far more productive to government, somewhat better for the British throwsters, and probably equally convenient to the importers of thrown silk, that the duty of ten-pence, or of a shilling per pound, were payable on organzine, and a proportionate rate on other kinds, without the allowance of any bounty on silk manufactures exported.

374

ESSAY XIII.

ON THE EMPLOYMENT OF CAPITAL IN COMMERCE.

It is obvious that by allowing individuals resident in the same country the utmost degree of freedom in exchanging their respective productions for each other, industry is promoted and encouraged. In this state of freedom every facility is afforded for the greatest subdivision of labour, and the produce, which is most advantageously provided in different districts, becomes available for the common benefit. Before the revolution in France, trading intercourse, and more especially that in corn between the different provinces, was subjected to many restraints which have since been removed. In consequence of the more ready interchange of the various national productions for each other, the whole kingdom acquired additional prosperity, and the enjoyments of the people increased. Formerly, one province might be in want of provisions, whilst another possessed a superfluity; but restrictions impeded the transfer of a part of the abundance in one district to alleviate the scarcity in another, and the people suffered from the ignorance of their rulers.