Economists -- Great Britain -- Biography; Smith, Adam, 1723-1790
Moreover, there is happily extant a relic of the correspondence which
Smith carried on as financial adviser to ministers. In the year 1778
Ireland was in a terrible plight. In addition to all the evils of a
minority rule, she suffered as a whole from a commercial persecution by
the predominant partner. Her trade had been deliberately and
malevolently throttled by the superior legislature of Great Britain. At
that time Irish wool could be exported to no country save Great Britain.
Irish woollens could only be exported from specified ports in Ireland to
specified ports in Great Britain. All export of Irish glass was
absolutely prohibited. Worst of all, she was not allowed to send her
staple article—cattle—or even salt provisions to the English market. And
she was excluded from the colonial trade.
Even so cool a political hand as Henry Dundas (then Lord Advocate),
writing to Smith at the end of October 1779, confessed that he has been
shocked at the tone and temper of the House of Commons in its dealings
with Ireland’s prayers for elementary justice. But the Irish Parliament
was now demanding free trade in tones too peremptory to be ignored, for
they were backed by a threatening display of armed force. Dundas saw
little objection to acceding to some of the requisitions; but he had no
very clear grasp of the economics of the situation, and being in
correspondence with Eden, the Secretary of the Board of Trade, he wanted
an expert opinion from the Seer of Edinburgh. Smith replies that the
Irish demand should be satisfied, first, because it is just; second,
because it will be for the benefit of English consumers; and lastly,
because English manufacturers will suffer so much less than the nation,
and the national revenue, will gain. Dundas had seemed to be rather
afraid that with cheaper labour and lower taxes the Irish manufacturers
might be able to undersell their British competitors. Smith pointed out
that they had neither the skill nor the stock [capital] to enable them
to do so; “and though both may be acquired in time, to acquire them
completely will require more than a century.” Besides, Ireland had
neither coal nor wood; “and though her soil and climate are perfectly
suited for raising the latter, yet to raise it to the same degree as in
England will require more than a century.”
Public-domain text, read in full here on John Shaqi.
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