418. The effects of duties upon the import of foreign manufactures are equally curious. A singular instance occurred in the United States, where bar-iron was, on its introduction. liable to a duty of 140 per cent ad valorem, whilst hardware was charged at 25 per cent only. In consequence of this tax, large quantities of malleable iron rails for railroads were imported into America under the denomination of hardware; the difference of 115 per cent in duty more than counter balancing the expense of fashioning the iron into rails prior to its importation. 419. Duties, drawbacks, and bounties, when considerable in amount, are all liable to objections of a very serious nature, from the frauds to which they give rise. It has been stated before Committees of the House of Commons, that calicoes made up in the form, and with the appearance of linen, have frequently been exported for the purpose of obtaining the bounty, for calico made up in this way sells only at 1s. 4d. per yard, whereas linen of equal fineness is worth from 2s. 8d. to 2s. 10d. per yard. It appeared from the evidence, that one house in six months sold five hundred such pieces of calico. In almost all cases heavy duties, or prohibitions, are ineffective as well as injurious; for unless the articles excluded are of very large dimensions, there constantly arises a price at which they will be clandestinely imported by the smuggler. The extent, therefore, to which smuggling can be carried, should always be considered in the imposition of new duties, or in the alteration of old ones. Unfortunately it has been pushed so far, and is so systematically conducted between this country and France, that the price per cent at which most contraband articles can be procured is perfectly well known. From the evidence of Mr Galloway, it appears that, from 30 to 40 per cent was the rate of insurance on exporting prohibited machinery from England, and that the larger the quantity the less was the percentage demanded. From evidence given in the Report of the Watch and Clock-makers' Committee, in 1817, it appears that persons were constantly in the habit of receiving in France watches, lace, silks, and other articles of value easily portable, and delivering them in England at ten per cent on their estimated worth, in which sum the cost of transport and the risk of smuggling were included.