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for　ever　all　hopes　of　making　a　fortune；　of　which　they　have　the

means　in　their　hands；　and　content　themselves　with　the　moderate

salaries　which　those　masters　allow　them；　and　which；　moderate　as

they　are；　can　seldom　be　augmented；　being　commonly　as　large　as　the

real　profits　of　the　company　trade　can　afford。　In　such

circumstances；　to　prohibit　the　servants　of　the　company　from

trading　upon　their　own　account　can　have　scarce　any　other　effect

than　to　enable　the　superior　servants；　under　pretence　of　executing

their　masters'　order；　to　oppress　such　of　the　inferior　ones　as

have　had　the　misfortune　to　fall　under　their　displeasure。　The

servants　naturally　endeavour　to　establish　the　same　monopoly　in

favour　of　their　own　private　trade　as　of　the　public　trade　of　the

company。　If　they　are　suffered　to　act　as　they　could　wish；　they

will　establish　this　monopoly　openly　and　directly；　by　fairly

prohibiting　all　other　people　from　trading　in　the　articles　in

which　they　choose　to　deal；　and　this；　perhaps；　is　the　best　and

least　oppressive　way　of　establishing　it。　But　if　by　an　order　from

Europe　they　are　prohibited　from　doing　this；　they　will；

notwithstanding；　endeavour　to　establish　a　monopoly　of　the　same

kind；　secretly　and　indirectly；　in　a　way　that　is　much　more

destructive　to　the　country。　They　will　employ　the　whole　authority

of　government；　and　pervert　the　administration　of　justice；　in

order　to　harass　and　ruin　those　who　interfere　with　them　in　any

branch　of　commerce；　which　by　means　of　agents；　either　concealed；

or　at　least　not　publicly　avowed；　they　may　choose　to　carry　on。　But

the　private　trade　of　the　servants　will　naturally　extend　to　a　much

greater　variety　of　articles　than　the　public　trade　of　the　company。

The　public　trade　of　the　company　extends　no　further　than　the　trade

with　Europe；　and　comprehends　a　part　only　of　the　foreign　trade　of

the　country。　But　the　private　trade　of　the　servants　may　extend　to

all　the　different　branches　both　of　its　inland　and　foreign　trade。

The　monopoly　of　the　company　can　tend　only　to　stunt　the　natural

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