ACCOUNT OF CHANGES IN THE COMMERCIAL POLICY OF

ENGLAND.

acriprotitii 47:)Harni.

THE policy of this, like that of almost every other country, was for- merly protective and intermeddling to the last degree. To .•::iourage industry by bounties, monopolies, and prohibitions, and in tarn to pro- tect the consumer by fixing the prices at which commoditi,.s should he sold, were established and every-day modes. The shipping interest, of more importance it would seem to an insular people, though not alto- gether overlooked, received less of legislative patronage than commerce, until the year 1651, when the celebrated Act of Navigation was passed by the Long Parliament. It had its origin in political motives ; it was levelled at "our dear and ancient allies the Dutch ; " its object was to cripple their Navy by destroying their carrying trade. By this act, all Asian, African, and American commodities could only he im- ported into England, Ireland, and the Plantations, in ships belonging to English subjects, and of which the master and the greater number of the crew were also English. No European commodities could be imported but in English ships, or in ships of the country in which the goods were produced, or from which they could only be or ?rare most usually imported. (" A clause," says " expressly levelled against the Dutch, who had but little -native produce to export, and whose ships were principally employed in carrying the produce of other countries to foreign markets.") Many of the most bulky-articles could only be imported in British ships from the country in which they were produced, lest they might be brought in foreign ships from the place of their production to some nearer port, and the British vessels lose the benefit of the longer voyage. Under the reign of CHARLES the Second, the Act was rendered still more restrictive, widen intercourse abolished (so far as an Act of Parliament could abolish it) with Germany, Hol- land, and the Netherlands. Some of the restrictions were subsequently modified, but the leading principles remained unshaken till within these few years. The temporary political wisdom or even the commercial policy of the Act we have not space to inquire into. Its political wis- dom has been praised by very high authority; its commercial mischief has been affirmed by several practical men from the days of its enact- ment downwards.* But whatever might have been its original wis- dom, the time had arrived when it could be maintained no longer. Whilst we possessed a monopoly of the markets of the world, the world was obliged to submit to our terms. When other competitors began to appear, affairs were altered. America soon after the war of the Revolution, Holland in 1821, and Prussia in 1822, followed our ex- ample, though at humble distance ; for they contented themselves with levying, or with threatening to levy higher duties upon vessels, or upon commodities imported in vessels, of those countries which subjected their own ships to disadvantageous conditions. The necessity of the

• The following articles are under 20 per cent. It will, however, be seen, from the revenue they yield, that the importations are not so excessive as to cause much derange- ment in a community whose annual income is. at a moderate computation, from 300 to 400 millions.

Cotton Manufactures £3,233 .. £10 per cent.

Models .. 5 ....

Tiles 15 1- It will be observed that this was written before the meeting of the Reformed Par- liament. case had forced us, in 1815, to enter into a reciprocal arrangement with America (as we had with our "ancient ally " Portugal in 1810); but upon these intimations of the intentions of the European powers, Mr. HUSKISSON brought in a bill by which the King in Council was allowed to place oc foreign ships upon the same footing, either in respect to duties levied upon the ship or upon the goods imported in the ship, as British vessels carrying on the same trade, provided that such foreign states reciprocally established the same equality as to British ships trading with their ports." Some modifications had been previously in- troduced by Mr. WALLACE and Mr. ROBINSON in 1821-2, by which

(1.) Enumerated goods might be imported either in British ships, in ships of the country of which the goods are the produce, or in ships of the country or place from which they are imported into England; and (2.) British slips might import articles (not prohibited) wherever they could find them ; whereas, formerly, commodities of Asia, Africa, and South America could only be imported direct from the place of their production. Such is the Reciprocity System, and the modification of the Naviga- tion-laws ; with which Free Trade has little to do. For we may have a treaty of reciprocity with any country-may admit its ships into our ports upon payment of the same duties as they levy upon our vessels ; whilst either country or both countries may tax or prohibit the commo- dities of the other. That the alteration might have injured the ship- owners, is possible; that it could have injured the manufacturing or trading interests, is improbable; for its tendency was to open up new markets and increase the facilities of transport. What, however, has been its effects upon our commercial marine ? In 1831, the tonnage on British vessels had increased upwards of 600,000 tons beyond what it was in 182i-2-3. The shipowners assert, indeed, that profits are low; but this is unfortunately the case in every business. That they are ruinously low-that they will not repay the wear and tear of the vessel and the expense of the voyage-seems prima facie impossible. A man whose property is embarked in an undertaking may be induced to con- thine it even at loss : that fresh capital, not only sufficient to replace old vessels, but to construct new ones, should continually keep flowing into a business during a long period of time, if that business would yield no profit, is too absurd for belief. Dismissing the ReciprocitySystem, we proceed to

lac eraVe.

UNDER our old commercial policy, a few articles of raw material were admitted at a low rate of duty ; the Corn Trade was in a measure free ; the Agriculturists were oppressed by the restrictions, or rather the prohibitions, on the exportation of Wool. In other respects our com- mercial system was rigidly exclusive. After the peace, the protection and the distresses of the corn-growers commenced. In May 1820, the celebrated petition of the Merchants of London was presented to the House of Commons ; and in 1824, a disposition was manifested by Mr. RomNsoN (now Lord Goomtmli) and Mr. IIUSKISSON to act upon its principles. The Wool Trade was set free, and a change took place in the scale of duty upon a variety of articles. These are enu- merated in the following Table ;* which also shows the old rate of ditiy and the duty to which they were at first subjected under the new system.

AxtrrAcroxits- UNFNUMEHATED Goons, wholly or in part-

man allutured 50/. per cent °01. per cent. unuutauractureti 501. per cent. M. per cent.

Out of all this list, there are but two articles, tire manufacture of which the stanchest opponent of free trade would assert to be greatly injured by the change,-those are Silks and Gloves. If we take either the value of the imports or calculate by the duty, the amount of the silk goods imported into the kingdom does not amount to half a million. The value of gloves does not perhaps exceed 60,0001., certainly not 100,0001. If these two branches of business be of national importance, it seems somewhat singular that importations to this amount should have ruined the trades, especially when the importation of unmanu- factored silk has risen from two to four millions of pounds, and that of skins has largely increased. That the alteration could have had any effect upon the general prosperity of the country seems impossible; because-1. Very small quantities of the foreign commodities have been imported; 2. A large proportion of the free trade articles are raw materials; 3. The exportation of British manufactures, either directly or indirectly affected by the change, has considerably increased. Silk Cottons woollens

Linens 401. to 1801, per cent.

Paper Prohibited Glass East henwase 751. per cent Books+ Glove: Prohibited

RAW MATERIALS-

Copper 51/. per ton Iron 6/ 10s. per ton Speller per ton 51. 3s. Oct per cwt.

Lt col 15/. per cwt

Old Duty. Net. Duty. Prohibited 301. per cent. 511. to 751. per cent. 10/. per cent. .15/. per cent.

40/. per cent. (on average). 3d. and 2d. per lb.

15/. and 301. per cent. One half.

301. per rent. (on average).

271. per ton. 11. 10s. per tog. 14/. per ton.

21.11s. per cwt. 21.10s. per cwt.