CHAPTER XIII.

TAXES ON FOREIGN MANUFACTURES.

'HE primary objects in taxing foreign manufactures

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are to protect and encourage national industry. But we should remember, first, that all really national industries thrive best without any protection; and, secondly, that the industries of a nation are, like its produce, often indigenous to the soil, and that when out of their natural homes they never obtain a permanent and luxuriant growth. No legislative expedient will overturn this beneficent provision of a wise and gracious Providence; and when new manufactures are introduced in defiance of all natural laws in countries not adapted for their growth, they either speedily die out or continue as permanent sources of public disappointment and national loss. By thus forcing, moreover, such manufactures in an ungenial soil, we deprive ourselves of the use of foreign manufactures, and while we protect the interest of a class, we disregard and positively injure the interests of the nation at large.

SECTION I.

LINEN.

THE linen manufacture has its chief seat principally in Ireland, though England and Scotland abound also in

linen factories. In olden times, in the good old days of government interference, it was thought a very legitimate thing to ask the sovereign to discourage a manufacture in one place and to promote it in another, quite regardless of the natural capabilities of such countries for their respective manufactures. Thus in 1698 both Houses of Parliament addressed his Majesty William III., representing that the progress of the woollen manufacture of Ireland was in-jurious to England, and that it would be for the public advantage to discourage the same, and to establish the linen manufacture in its stead. To this bold proposition his Majesty replied, I shall do all that in me lies to discourage the woollen manufacture in Ireland, and encourage the linen manufacture, and to promote the trade of England!' And the promise was fulfilled by a long series of laws restricting, prohibiting, and diverting the trade of the United Kingdom, by awarding premiums and encouragements of various kinds, and granting bounties on the exportation of linen, amounting to nearly one-seventh part of the entire real or declared value of the linen exported.

These measures, however, have long been altogether abandoned, and the British linen manufacture is thriving without any protection, bounties, or rewards.

The impolicy of such protective duties was well illustrated by the Belfast Chamber of Commerce in their report on the high duties charged in France on foreign linen. It was by them calculated that the French nation paid at least one fifth more for the article of linen than it would have done under even a moderate

system of duty. Estimating the consumption of linen in France at seven yards for each person, the consumption will be 250,000,000 yards per annum, which, at 18. per yard, gives the annual value at 12,500,000l. The same fabric could be produced in Ireland and Scotland at 20 per cent. less, on account of the lower price of our linen yarns, which were excluded from France by prohibitory duties. So that the French nation were paying in this article alone upwards of 2,500,000l. as a boon to their linen manufacturers. By the new tariff foreign linen manufactures will pay in France an advalorem duty of 30 per cent. In the United States the duty is 15 per cent. ad valorem. In Russia, linen cloth mixed or not mixed with cotton, pays 25 per cent. ad valorem. In Holland the duty is only 1 per cent. ad valorem. In the kingdom of Sardinia linen grey of less than six threads of warp (within 5 millimetres) pays per lb.

The extent of the linen manufacture in the United Kingdom may be shown from the fact that in 1856 there were 417 flax factories having 1,288,043 spindles and 7689 power looms; the manufacture giving employment to upwards of 380,000 persons. The value of linen manufactures exported in 1841 was 3,347,555l., and of linen yarn 972,466l. In 1859 the linen manufactures exported amounted to 4,607,245., and the linen yarn to 1,684,4897.

SECTION II.

WOOLLEN.

THE art of spinning wool was introduced into this country by the Romans, but the manufacture of broad cloth commenced only at the beginning of the thirteenth century. And even for a long time after that period, English wool continued to be exported to Flanders, from whence it came back in the shape of fine cloth, in the same manner as the Americans are now sending their raw cotton to Britain, and get it back in manufactured calicoes and cotton goods. Edward III. encouraged Flemish weavers, fullers, dyers, and others to come over to this country; but so great was the jealousy against them, that a statute was required to protect such emigrants from the assaults of the rabble. Soon after, an act was passed prohibiting the wear of any cloth made beyond sea, and interdicting the export of English wool. So much anxiety was indeed felt at the progress of this manufacture, that during the reign of Charles II., owing to some unfounded complaints of its decay, an act was passed ordering that all persons should be buried in woollen shrouds. Such was the condition of the woollen manufacture of the United Kingdom in time past. But the futility of any measures for the protection of our manufacture was at last recognised, and it became too manifest that the interference of the Legislature could only be prejudicial to the progress of our manufacturing industry.

The woollen manufacture is now free from all adventitious support, and fears no competition. Notwithstanding all the trammels which have been imposed by foreign tariffs on the importation of British woollen goods, our exports are increasing enormously; and we may well anticipate that, with the adoption of a free-trade policy on the continent of Europe, new and extensive markets may be opened for our woollen manufactures. We need not be alarmed at the recent abolition of all import duties on foreign woollen manufactures. The international exhibitions in London and Paris afforded opportunities for comparing the advance made by all nations in this and other manufactures, and it was then found that Continental manufacturers could only claim a superiority over English goods in the finer class of fabrics, those suited only to a limited demand, or to particular markets, rather than in the common and more popular descriptions; whilst they have a special aptitude for tasteful designs and colouring in fancy goods.

A considerable change is about to be introduced in the French commercial legislation on woollen manufactures. Till the recent alteration effected in consequence of the treaty with the United Kingdom, the import of foreign woollen manufactures was either totally prohibited in France, or charged with practically prohibitory duties. The French manufacturers were, moreover, obliged to pay an ad-valorem duty on wool of 20 per cent., if imported in French bottoms, which amounted to not less than 5 or 6 per cent. on the value of the manufactured article. The manufacturers received a drawback of 5