=431. Prevalence of smuggling.=—A partial relief from the burden of
the customs was obtained by smuggling. Tariffs could hinder but could
not absolutely stop the natural movement of commodities. Smuggling was
a regular profession, with a tariff modeled on the regular tariff,
but enough lower to invite business; the smuggler’s charge varied
ordinarily from 15 to 40 per cent ad valorem. Large numbers of the
common people were leagued with the smugglers to defy the law, and the
upper classes, even the legislators themselves, accepted smuggling as
a matter of course. A member of the House of Commons once flourished
his silk bandanna handkerchief before the House, saying: “Here is a
foreign ware that is totally prohibited. Nearly every one of you has a
similar illicit article in his pocket. So much for your prohibition.”
The government framed its duties with an eye to the ease of evading
them; it laid a higher duty on fancy silks than on plain, because the
smugglers were at a disadvantage in handling the former, which had to
be brought in at once, before the fashions changed, while plain goods
could wait the smuggler’s convenience.
=432. Beginning of the reform movement, 1820.=—More and more as time
went on, and England’s commercial capacity increased, were the evils
and abuses of the system appreciated. By 1820 the times were ripe for
a change, and the movement to reform was initiated in that year by
a petition from a group of London merchants. The petition urged the
principle of free trade which the economist Adam Smith had supported
in his “Wealth of Nations” (published in 1776), and prayed that all
restrictive regulations, not imposed on account of the revenue,
including all duties of a protective character, might be repealed at
once.
=433. Reform of the tariff under Huskisson.=—The early stages of tariff
reform, effected under the leadership of Huskisson about 1825, included
the following: (1) The simplification and condensation into manageable
form of the customs laws. (2) Reduction or removal of the duties on
raw materials. (3) Reduction of the duties on manufactures, generally
to 30 per cent or less, on the principle that such a duty was ample
for protection, if a ware could be made at home to advantage. (4) The
removal of most of the restrictions on export. These restrictions had
affected raw materials, partly manufactured goods, and even artisans
themselves. The government had tried to keep skilled workmen at
home, but found that it merely made them discontented, forced them
to evasions, and kept them from coming back when they had once left
the country: it left them henceforth free to emigrate. It was still
unwilling to allow machinery to be exported freely, for fear that
other countries would build up a competition in manufactures, but it
recognized the difficulty of making its restrictions effective, and
relaxed them greatly.
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