An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith (ebook reader macos .TXT) π
The causes of this improvement in the productive powers of labour, and the order according to which its produce is naturally distributed among the different ranks and conditions of men in the society, make the subject of the first book of this Inquiry.
Whatever be the actual state of the skill, dexterity, and judgment, with which labour is applied in any nation, the abundance or scantiness of its annual supply must depend, during the continuance of that state, upon the proportion between the number of those who are annually employed in useful labour, and that of those who are not so employed. The number of us
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the exportation of wool. Even tobacco-pipe clay, though
acknowledged to be different from fullerβs clay, yet, on account
of their resemblance, and because fullerβs clay might sometimes
be exported as tobacco-pipe clay, has been laid under the same
prohibitions and penalties.
By the 13th and 14th of Charles II. chap, 7, the exportation, not
only of raw hides, but of tanned leather, except in the shape of
boots, shoes, or slippers, was prohibited ; and the law gave a
monopoly to our boot-makers and shoemakers, not only against our
graziers, but against our tanners. By subsequent statutes, our
tanners have got themselves exempted from this monopoly, upon
paying a small tax of only one shilling on the hundred weight of
tanned leather, weighing one hundred and twelve pounds. They have
obtained likewise the drawback of two-thirds of the excise duties
imposed upon their commodity, even when exported without further
manufacture. All manufactures of leather may be exported duty
free ; and the exporter is besides entitled to the drawback of
the whole duties of excise. Our graziers still continue
subject to the old monopoly. Graziers, separated from one
another, and dispersed through all the different corners of the
country, cannot, without great difficulty, combine together for
the purpose either of imposing monopolies upon their
fellow-citizens, or of exempting themselves from such as may have
been imposed upon them by other people. Manufacturers of all
kinds, collected together in numerous bodies in all great cities,
easily can. Even the horns of cattle are prohibited to be
exported ; and the two insignificant trades of the horner and
comb-maker enjoy, in this respect, a monopoly against the
graziers.
Restraints, either by prohibitions, or by taxes, upon the
exportation of goods which are partially, but not completely
manufactured, are not peculiar to the manufacture of leather. As
long as anything remains to be done, in order to fit any
commodity for immediate use and consumption, our manufacturers
think that they themselves ought to have the doing of it. Woollen
yarn and worsted are prohibited to be exported, under the same
penalties as wool even white cloths we subject to a duty upon
exportation; and our dyers have so far obtained a monopoly
against our clothiers. Our clothiers would probably have been
able to defend themselves against it; but it happens that the
greater part of our principal clothiers are themselves likewise
dyers. Watch-cases, clock-cases, and dial-plates for clocks and
watches, have been prohibited to be exported. Our clock-makers
and watch-makers are, it seems, unwilling that the price of this
sort of workmanship should be raised upon them by the competition
of foreigners.
By some old statutes of Edward III, Henry VIII. and Edward VI.
the exportation of all metals was prohibited. Lead and tin were
alone excepted, probably on account of the great abundance of
those metals; in the exportation of which a considerable part of
the trade of the kingdom in those days consisted. For the
encouragement of the mining trade, the 5th of William and Mary,
chap.17, exempted from this prohibition iron, copper, and mundic
metal made from British ore. The exportation of all sorts of
copper bars, foreign as well as British, was afterwards permitted
by the 9th and 10th of Willimn III. chap 26. The exportation of
unmanufactured brass, of what is called gun-metal, bell-metal,
and shroff metal, still continues to be prohibited. Brass
manufactures of all sorts may be exported duty free.
The exportation of the materials of manufacture, where it is not
altogether prohibited, is, in many cases, subjected to
considerable duties.
By the 8th Geo. I. chap.15, the exportation of all goods, the
produce of manufacture of Great Britain, upon which any duties
had been imposed by former statutes, was rendered duty free. The
following goods, however, were excepted: alum, lead, lead-ore,
tin, tanned leather, copperas, coals, wool, cards, white woollen
cloths, lapis calaminaris, skins of all sorts, glue, coney hair
or wool, hares wool, hair of all sorts, horses, and litharge of
lead. If you except horses, all these are either materials of
manufacture, or incomplete manufactures (which may be considered
as materials for still further manufacture), or instruments of
trade. This statute leaves them subject to all the old duties
which had ever been imposed upon them, the old subsidy, and one
per cent. outwards.
By the same statute, a great number of foreign drugs for dyers
use are exempted from all duties upon importation. Each of them,
however, is afterwards subjected to a certain duty, not indeed a
very heavy one, upon exportation. Our dyers, it seems, while they
thought it for their interest to encourage the importation of
those drugs, by an exemption from all duties, thought it likewise
for their own interest to throw some small discouragement upon
their exportation. The avidity, however, which suggested this
notable piece of mercantile ingenuity, most probably disappointed
itself of its object. It necessarily taught the importers to be
more careful than they might otherwise have been, that their
importation should not exceed what was necessary for the supply
of the home market. The home market was at all times likely to be
more scantily supplied ; the commodities were at all times likely
to be somewhat dearer there than they would have been, had the
exportation been rendered as free as the importation.
By the abovementioned statute, gum senega, or gum arabic, being
among the enumerated dyeing drugs, might be imported duty free.
They were subjected, indeed, to a small poundage duty, amounting
only to threepence in the hundred weight, upon their
re-exportation. France enjoyed, at that time, an exclusive trade
to the country most productive of those drugs, that which lies in
the neighbourhood of the Senegal ; and the British market could
not be easily supplied by the immediate importation of them from
the place of growth. By the 25th Geo. II. therefore, gum senega
was allowed to be imported (contrary to the general dispositions
of the act of navigation) from any part of Europe. As the law,
however, did not mean to encourage this species of trade, so
contrary to the general principles of the mercantile policy of
England, it imposed a duty of ten shillings the hundred weight
upon such importation, and no part of this duty was to be
afterwards drawn back upon its exportation. The successful war
which began in 1755 gave Great Britain the same exclusive trade
to those countries which France had enjoyed before. Our
manufactures, as soon as the peace was made, endeavoured to avail
themselves of this advantage, and to establish a monopoly in
their own favour both against the growers and against the
importers of this comnmdity. By the 5th of Geo. III. therefore,
chap. 37, the exportation of gum senega, from his majestyβs
dominions in Africa, was confined to Great Britain, and was
subjected to all the same restrictions, regulations, forfeitures,
and penalties, as that of the enumerated commodities of the
British colonies in America and the West Indies. Its importation,
indeed, was subjected to a small duty of sixpence the hundred
weight; but its re-exportation was subjected to the enormous duty
of one pound ten shillings the hundred weight. It was the
intention of our manufacturers, that the whole produce of those
countries should be imported into Great Britain; and in order
that they themselves might he enabled to buy it at their own
price, that no part of it should be exported again, but at such
an expense as would sufficiently discourage that exportation.
Their avidity, however, upon this, as well as upon many other
occasions, disappointed itself of its object. This enormous duty
presented such a temptation to smuggling, that great quantities
of this commodity were clandestinely exported, probably to all
the manufacturing countries of Europe, but particularly to
Holland, not only from Great Britain, but from Afrira. Upon this
account, by the 14th Geo. III. chap.10, this duty upon
exportation was reduced to five shillings the hundred weight.
In the book of rates, according to which the old subsidy was
levied, beaver skins were estimated at six shillings and eight
pence a piece; and the different subsidies and imposts which,
before the year 1722, had been laid upon their importation,
amounted to one-fifth part of the rate, or to sixteen pence upon
each skin; all of which, except half the old subsidy, amounting
only to twopence, was drawn back upon exportation. This duty,
upon the importation of so important a material of manufacture,
had been thought too high; and, in the year 1722, the rate was
reduced to two shillings and sixpence, which reduced the duty
upon importation to sixpence, and of this only one-half was to be
drawn back upon exportation. The same successful war put the
country most productive of beaver under the dominion of Great
Britain ; and beaver skins being among the enumerated
commodities, the exportation from America was consequently
confined to the market of Great Britain. Our manufacturers soon
bethought themselves of the advantage which they might make of
this circumstance; and in the year 1764, the duty upon the
importation of beaver skin was reduced to one penny, but the duty
upon exportation was raised to sevenpence each skin, without any
drawback of the duty upon importation. By the same law, a duty of
eighteen pence the pound was imposed upon the exportation of
beaver wool or woumbs, without making any alteration in the duty
upon the importation of that commodity, which, when imported by
British, and in British shipping, amounted at that time to
between fourpence and fivepence the piece.
Coals may be considered both as a material of manufacture, and as
an instrument of trade. Heavy duties, accordingly, have been
imposed upon their exportation, amounting at present (1783) to
more than five shillings the ton, or more than fifteen shillings
the chaldron, Newcastle measure ; which is, in most cases, more
than the original value of the commodity at the coal-pit, or even
at the shipping port for exportation.
The exportation, however, of the instruments of trade, properly
so called, is commonly restrained, not by high duties, but by
absolute prohibitions. Thus, by the 7th and 8th of William III
chap.20, sect.8, the exportation of frames or engines for
knitting gloves or stockings, is prohibited, under the penalty,
not only of the forfeiture of such frames or engines, so
exported, or attempted to be exported, but of forty pounds, one
half to the king, the other to the person who shall inform or sue
for the same. In the same manner, by the 14th Geo. III. chap. 71,
the exportation to foreign parts, of any utensils made use of in
the cotton, linen, woollen, and silk manufactures, is prohibited
under the penalty, not only of the forfeiture of such utensils,
but of two hundred pounds, to be paid by the person who shall
offend in this manner ; and likewise of two hundred pounds, to be
paid by the master of the ship, who shall knowingly suffer such
utensils to be loaded on board his ship.
When such heavy penalties were imposed upon the exportation of
the dead instruments of trade, it could not well be expected that
the living instrument, the artificer, should be allowed to go
free. Accordingly, by the 5th Geo. I. chap. 27, the person who
shall be convicted of enticing any artificer, of or in any of the
manufactures of Great Britain, to go into any foreign parts, in
order to practise or teach his trade, is liable, for the first
offence, to be fined in any sum not exceeding one hundred pounds,
and to three months imprisomnent, and until the fine shall be
paid ; and for the second offence, to be fined in any sum, at the
discretion of the court, and to imprisonment for twelve months,
and until the fine shall be paid. By the 23d Geo. II.
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