On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
He has attempted also to shew, that this freedom of commerce, which
undoubtedly promotes the interest of the whole, promotes also that of
each particular country; and that the narrow policy adopted in the
countries of Europe respecting their colonies, is not less injurious to
the mother countries themselves, than to the colonies whose interests
are sacrificed.
"The monopoly of the colony trade," he says, "like all the other mean
and malignant expedients of the mercantile system, depresses the
industry of all other countries, but chiefly that of the colonies,
without, in the least, increasing, but on the contrary diminishing, that
of the country in whose favour it is established."
This part of his subject, however, is not treated in so clear and
convincing a manner as that in which he shews the injustice of this
system towards the colony.
Without affirming or denying, that the actual practice of Europe with
regard to their colonies is injurious to the mother countries, I may be
permitted to doubt whether a mother country may not sometimes be
benefited by the restraints to which she subjects her colonial
possessions. Who can doubt, for example, that if England were the
colony of France, the latter country would be benefited by a heavy
bounty paid by England on the exportation of corn, cloth, or any other
commodities? In examining the question of bounties, on the supposition
of corn being at 4_l._ per quarter in this country, we saw, that with a
bounty of 10_s._ per quarter, on exportation in England, corn would have
been reduced to 3_l._ 10_s._ in France. Now, if corn had previously been
at 3_l._ 15_s._ per quarter in France, the French consumers would have
been benefited by 5_s._ per quarter on all imported corn; if the natural
price of corn in France were before 4_l._, they would have gained the
whole bounty of 10_s._ per quarter. France would thus be benefited by
the loss sustained by England: she would not gain a part only of what
England lost, but in some cases the whole.
It may however be said, that a bounty on exportation is a measure of
internal policy, and could not easily be imposed by the mother country.
If it would suit the interests of Jamaica and Holland to make an
exchange of the commodities which they respectively produce, without the
intervention of England, it is quite certain, that by their being
prevented from so doing, the interests of Holland and Jamaica would
suffer; but if Jamaica is obliged to send her goods to England, and
there exchange them for Dutch goods, an English capital, or English
agency, will be employed in a trade in which it would not otherwise be
engaged. It is allured thither by a bounty, not paid by England, but by
Holland and Jamaica.
Public-domain text, read in full here on John Shaqi.
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