Of the Agricultural Systems, or of those Systems of Political Economy, which represent the Produce of Land, as either the sole or the principal Source PART III. Of the Expence of Public Works and Public Institutions ARTICLE ISt. Of the Public Works and Institutions for facilitating the Ist, For facilitating the general Commerce of the Society 2dly, For facilitating particular Branches of Commerce ARTICLE 2d. Of the Expence of the Institutions for the Education of Youth ARTICLE 3d. Of the Expence of the Institutions for the Instruction of People [From Introduction and Plan of the Work' in vol. i. to 'Public Debts' above, the Con- AN INQUIRY INTO THE NATURE AND CAUSES M OF THE WEALTH OF NATIONS BOOK IV CHAPTER IV OF DRAWBACKS ERCHANTS and manufacturers are not contented with the monopoly of the home market, but desire likewise the most extensive foreign sale for their goods. Their country has no jurisdiction in foreign nations, and therefore can seldom procure them any monopoly there. They are generally obliged, therefore, to content themselves with petitioning for certain encouragements to exportation. Of these encouragements what are called Drawbacks seem to be the most reasonable. To allow the merchant to draw back upon exportation, either the whole or a part of whatever excise or inland duty is imposed upon domestic industry, can never occasion the exportation of a greater quantity of goods than what would have been exported had no duty been imposed. Such encouragements do not tend to turn towards any particular employment a greater share of the capital of the country, than what would go to that employment 1 of its own accord, but only to hinder the duty from driving away any part of that share to other employments. They tend not to overturn that balance which naturally establishes itself among all the various employments of the society; but to hinder it from being overturned by the duty. They tend not to destroy, but to preserve, what it is in most cases advantageous 1[Eds. 1 and 2 read 'go to it'.] VOL. II.-1 Merchants demand encouragements to exportation. Drawbacks of duty paid on domestic produce are reasonable, as they preserve the natural dis tribution of labour. So are also drawbacks of duty paid on goods imported. Under the old subsidy a drawback of one-half is allowed. Of more recent duties the whole is generally allowed, and in some cases the whole even of the old subsidy is allowed. to preserve, the natural division and distribution of labour in the society. The same thing may be said of the drawbacks upon the re-exportation of foreign goods imported; which in Great Britain generally amount to by much the largest part of the duty upon importation.1 By the second of the rules, annexed to the act of parliament, which imposed, what is now called, the old subsidy, every merchant, whether English or alien, was allowed to draw back half that duty upon exportation; the English merchant, provided the exportation took place within twelve months; the alien, provided it took place within nine months. Wines, currants, and wrought silks were the only goods which did not fall within this rule, having other and more advantageous allowances. The duties imposed by this act of parliament were, at that time, the only duties upon the importation of foreign goods. The term within which this, and all other drawbacks, could be claimed, was afterwards (by 7 Geo. I. chap. 21. sect. 10.) extended to three years. 3 The duties which have been imposed since the old subsidy, are, the greater part of them, wholly drawn back upon exportation. This general rule, however, is liable to a great number of exceptions, and the doctrine of drawbacks has become a much less simple matter, than it was at their first institution. Upon the exportation of some foreign goods, of which it was expected that the importation would greatly exceed what was necessary for the home consumption, the whole duties are drawn back, without retaining even half the old subsidy. Before the revolt of our North American colonies, we had the monopoly of the tobacco of Maryland and Virginia. We imported about ninety-six thousand hogsheads, and the home consumption was not supposed to exceed fourteen thousand. To facilitate the great exportation which was necessary, in order to rid us of the rest, the whole duties were drawn back, provided the exportation took place within three years.5 We still have, though not altogether, yet very nearly, the monopoly of the sugars of our West Indian islands. If sugars are exported within a year, therefore, all the duties upon importation are drawn back, and if exported within three years, all the duties, except half 1[The next three pages are not in eds. 1 and 2; see below, p. 5, note.] [Henry Saxby, The British Customs, containing an Historical and Practical Account of each branch of that part of the Revenue, 1757, pp. 10, 308.] [These figures are also quoted above, vol. i., p. 352, and below, p. 103.] 5 [Saxby, British Customs, p. 12.] [Ibid., p. II.] |