of the war which began in 1755, and
which they brought back with them to the
mother country, where that wine had not been
much in fashion before. Upon the conclusion
of that war, in 1763 (by the 4th Geo. III,
chap. 15, sect. 12), all the duties except L.3,
10s. were allowed to be drawn back upon the
exportation to the colonies of all wines, except
French wines, to the commerce and consumption
of which national prejudice would
allow no sort of encouragement. The period
between the granting of this indulgence and
the revolt of our North American colonies,
was probably too short to admit of any considerable
change in the customs of those countries.
The same act which, in the drawbacks upon
all wines, except French wines, thus favoured
the colonies so much more than other countries,
in those upon the greater part of other
commodities, favoured them much less. Upon
the exportation of the greater part of commodities
to other countries, half the old subsidy
was drawn back. But this law enacted,
that no part of that duty should be drawn
back upon the exportation to the colonies of
any commodities of the growth or manufacture
either of Europe or the East Indies, except
wines, white calicoes, and muslins.
Drawbacks were, perhaps, originally granted
for the encouragement of the carrying trade,
which, as the freight of the ship is frequently
paid by foreigners in money, was supposed to
be peculiarly fitted for bringing gold and silver
into the country. But though the carrying
trade certainly deserves no peculiar encouragement,
though the motive of the institution
was, perhaps, abundantly foolish, the
institution itself seems reasonable enough.
Such drawbacks cannot force into this trade a
greater share of the capital of the country than
what would have gone to it of its own accord,
had there been no duties upon importation;
they only prevent its being excluded
altogether by those duties. The carrying trade,
though it deserves no preference, ought not
to be precluded, but to be left free, like all
other trades. It is a necessary resource to
those capitals which cannot find employment,
either in the agriculture or in the manufactures
of the country, either in its home trade,
or in its foreign trade of consumption.
The revenue of the customs, instead of suffering,
profits from such drawbacks, by that
part of the duty which is retained. If the
whole duties had been retained, the foreign
goods upon which they are paid could seldom
have been exported, nor consequently imported,
for want of a market. The duties,
therefore, of which a part is retained, would
never have been paid.
These reasons seem sufficiently to justify
drawbacks, and would justify them, though
the whole duties, whether upon the produce
of domestic industry or upon foreign goods,
were always drawn back upon exportation.
The revenue of excise would, in this case indeed,
suffer a little, and that of the customs a
good deal more; but the natural balance of
industry, the natural division and distribution
of labour, which is always more or less disturbed
by such duties, would be more nearly
re-established by such a regulation.
These reasons, however, will justify drawbacks
only upon exporting goods to those
countries which are altogether foreign and independent,
not to those in which our merchants
and manufacturers enjoy a monopoly.
A drawback, for example, upon the exportation
of European goods to our American colonies,
will not always occasion a greater exportation
than what would have taken place
without it. By means of the monopoly which
our merchants and manufacturers enjoy there,
the same quantity might frequently, perhaps,
be sent thither, though the whole duties were
retained. The drawback, therefore, may frequently
be pure loss to the revenue of excise
and customs, without altering the state of the
trade, or rendering it in any respect more extensive.
How far such drawbacks can be justified
as a proper encouragement to the industry
of our colonies, or how far it is advantageous
to the mother country that they should
be exempted from taxes which are paid by
all the rest of their fellow-subjects, will appear
hereafter, when I come to treat of colonies.
Drawbacks, however, it must always be understood,
are useful only in those cases in
which the goods, for the exportation of which
they are given, are really exported to some
foreign country, and not clandestinely re-imported
into our own. That some drawbacks,
particularly those upon tobacco, have frequently
been abused in this manner, and have
given occasion to many frauds, equally hurtful
both to the revenue and to the fair trader,
is well known.
CHAP. V.
OF BOUNTIES.
Bounties upon exportation are, in Great Britain,
frequently petitioned for, and sometimes
granted, to the produce of particular branches
of domestic industry. By means of them, our
merchants and manufacturers, it is pretended,
will be enabled to sell their goods as cheap or
cheaper than their rivals in the foreign market.
A greater quantity, it is said, will thus
be exported, and the balance of trade consequently
turned more in favour of our own
country. We cannot give our workmen a monopoly
in the foreign, as we have done in the