Prohibitions were found to be ineffective, however, and were a serious
hindrance to some branches of commerce, that with the East especially,
in which the foreigners demanded considerable supplies of the precious
metals. The export of bullion, therefore, was generally permitted, and
the government contented itself with a regulation of the commerce in
merchandise which, it hoped, would bring more bullion into the country
than was carried out.
=192. Features of the mercantile system; restriction of imports.=—If
the student will remember that the main object of the mercantile
system, as it was expressed in the commercial policy of the seventeenth
and eighteenth centuries, was to increase the credits in a country’s
foreign trade, and diminish the debits, so as to get a balance in cash,
the main features of the policy will be easily intelligible.
In the first place, imports were discouraged. A Spanish mercantilist
thought that his country suffered “an infinite wrong” from the
importation of fish from abroad, which, by his reckoning, cost the
country three million piasters a year; he suggested either that home
fisheries should be built up so that the money need not leave the
country, or that permission be obtained from the Pope to eat meat
on Saturdays, which would diminish the necessity for importation. A
typical example of the ideas underlying the policy is furnished by an
appeal of the English salt-makers in the seventeenth century, urging
that the use of foreign salt in the curing of fish be prohibited on the
ground that it was the “wisdom of a kingdom or nation to prevent the
importation of any manufacture from abroad which might be a detriment
to their own at home, for if the coin of the nation be carried out
to pay for foreign manufactures and our own people left unemployed,
then in case a war happen with our potent neighbours, the people are
incapacitated to pay taxes for the support of the same.”
Mercantilism and modern protectionism easily ran together, as is
apparent in the quotation, but the spirit animating restrictions was
in this period mainly mercantilist, based, that is, on consideration
of the flow of precious metals. The methods of tariff regulation,
moreover, differed from those of modern protectionism; statesmen did
not, in most cases, attempt to scale the duties so as just to balance
the advantages of the foreign producer, but resorted to downright
prohibition of the wares which they desired to exclude from the home
market.
Public-domain text, read in full here on John Shaqi.
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