this kind, against itself, to certain goods of a
foreign nation, because it expected, that in
the whole commerce between them, it would
annually sell more than it would buy, and
that a balance in gold and silver would be annually
returned to it. It is upon this principle
that the treaty of commerce between
England and Portugal, concluded in 1703 by
Mr Methuen, has been so much commended.
The following is a literal translation of that
treaty, which consists of three articles only.
ART. I.
His sacred royal majesty of Portugal promises,
both in his own name and that of his
successors, to admit for ever hereafter, into
Portugal, the woollen cloths, and the rest of
the woollen manufactures of the British, as
was accustomed, till they were prohibited by
the law; nevertheless upon this condition:
ART. II.
That is to say, that her sacred royal majesty
of Great Britain shall, in her own name, and
that of her successors, be obliged, for ever
hereafter, to admit the wines of the growth of
Portugal into Britain; so that at no time,
whether there shall be peace or war between
the kingdoms of Britain and France,
any thing more shall be demanded for these
wines by the name of custom or duty, or by
whatsoever other title, directly or indirectly,
whether they shall be imported into Great
Britain in pipes or hogsheads, or other casks,
than what shall be demanded for the like
quantity or measure of French wine, deducting
or abating a third part of the custom or
duty. But if, at any time, this deduction or
abatement of customs, which is to be made as
aforesaid, shall in any manner be attempted
and prejudiced, it shall be just and lawful for
his sacred royal majesty of Portugal, again to
prohibit the woollen cloths, and the rest of
the British woollen manufactures.
ART. III.
The most excellent lords the plenipotentiaries
promise and take upon themselves, that
their above named masters shall ratify this
treaty; and within the space of two months
the ratification shall be exchanged.
By this treaty, the crown of Portugal becomes
bound to admit the English woollens
upon the same footing as before the prohibition;
that is, not to raise the duties which
had been paid before that time. But it does
not become bound to admit them upon any
better terms than those of any other nation,
of France or Holland, for example. The
crown of Great Britain, on the contrary, becomes
bound to admit the wines of Portugal,
upon paying only two-thirds of the duty which
is paid for those of France, the wines most
likely to come into competition with them.
So far this treaty, therefore, is evidently advantageous
to Portugal, and disadvantageous
to Great Britain.
It has been celebrated, however, as a masterpiece
of the commercial policy of England.
Portugal receives annually from the Brazils
a greater quantity of gold than can be employed
in its domestic commerce, whether in
the shape of coin or of plate. The surplus is
too valuable to be allowed to lie idle and
locked up in coffers; and as it can find no
advantageous market at home, it must, notwithstanding
any prohibition, be sent abroad,
and exchanged for something for which there
is a more advantageous market at home. A
large share of it comes annually to England,
in return either for English goods, or for
those of other European nations that receive
their returns through England. Mr Barretti
was informed, that the weekly packet-boat
from Lisbon brings, one week with another,
more than L.50,000 in gold to England. The
sum had probably been exaggerated. It
would amount to more than L.2,600,000 a-year,
which is more than the Brazils are supposed
to afford.
Our merchants were, some years ago, out
of humour with the crown of Portugal. Some
privileges which had been granted them, not
by treaty, but by the free grace of that
crown, at the solicitation, indeed, it is probable,
and in return for much greater favours,
defence and protection from the crown of
Great Britain, had been either infringed or
revoked. The people, therefore, usually most
interested in celebrating the Portugal trade,
were then rather disposed to represent it as
less advantageous than it had commonly been
imagined. The far greater part, almost the
whole, they pretended, of this annual importation
of gold, was not on account of Great
Britain, but of other European nations; the
fruits and wines of Portugal annually imported
into Great Britain nearly compensating
the value of the British goods sent thither.
Let us suppose, however, that the whole
was on account of Great Britain, and that it
amounted to a still greater sum than Mr Barretti
seems to imagine; this trade would not,
upon that account, be more advantageous than
any other, in which, for the same value sent
out, we received an equal value of consumable
goods in return.
It is but a very small part of this importation
which, it can be supposed, is employed
as an annual addition, either to the plate or
to the coin of the kingdom. The rest must
all be sent abroad, and exchanged for consumable