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for ever all hopes of making a fortune�察�of which they have the

means in their hands�察�and content themselves with the moderate

salaries which those masters allow them�察�and which�察�moderate as

they are�察�can seldom be augmented�察�being commonly as large as the

real profits of the company trade can afford。 In such

circumstances�察�to prohibit the servants of the company from

trading upon their own account can have scarce any other effect

than to enable the superior servants�察�under pretence of executing

their masters' order�察�to oppress such of the inferior ones as

have had the misfortune to fall under their displeasure。 The

servants naturally endeavour to establish the same monopoly in

favour of their own private trade as of the public trade of the

company。 If they are suffered to act as they could wish�察�they

will establish this monopoly openly and directly�察�by fairly

prohibiting all other people from trading in the articles in

which they choose to deal�察�and this�察�perhaps�察�is the best and

least oppressive way of establishing it。 But if by an order from

Europe they are prohibited from doing this�察�they will��

notwithstanding�察�endeavour to establish a monopoly of the same

kind�察�secretly and indirectly�察�in a way that is much more

destructive to the country。 They will employ the whole authority

of government�察�and pervert the administration of justice�察�in

order to harass and ruin those who interfere with them in any

branch of commerce�察�which by means of agents�察�either concealed��

or at least not publicly avowed�察�they may choose to carry on。 But

the private trade of the servants will naturally extend to a much

greater variety of articles than the public trade of the company。

The public trade of the company extends no further than the trade

with Europe�察�and comprehends a part only of the foreign trade of

the country。 But the private trade of the servants may extend to

all the different branches both of its inland and foreign trade。

The monopoly of the company can tend only to stunt the natural

growth of that part of the surplus produce which�察�in the case of

a free trade�察�would be exported to Europe。 That of the servants

tends to stunt the natural growth of every part of the produce in

which they choose to deal�察�of what is destined for home

consumption�察�as well as of what is destined for exportation�察�and

consequently to degrade the cultivation of the whole country�察�and

to reduce the number of its inhabitants。 It tends to reduce the

quantity of every sort of produce�察�even that of the necessaries

of life�察�whenever the servants of the company choose to deal in

them�察�to what those servants can both afford to buy and expect to

sell with such a profit as pleases them。

     From the nature of their situation�察�too�察�the servants must

be more disposed to support with rigorous severity their own

interest against that of the country which they govern than their

masters can be to support theirs。 The country belongs to their

masters�察�who cannot avoid having some regard for the interest of

what belongs to them。 But it does not belong to the servants。 The

real interest of their masters�察�if they were capable of

understanding it�察�is the same with that of the country�察�and it is

from ignorance chiefly�察�and the meanness of mercantile prejudice��

that they ever oppress it。 But the real interest of the servants

is by no means the same with that of the country�察�and the most

perfect information would not necessarily put an end to their

oppressions。 The regulations accordingly which have been sent out

from Europe�察�though they have been frequently weak�察�have upon

most occasions been well´meaning。 More intelligence and perhaps

less good´meaning has sometimes appeared in those established by

the servants in India。 It is a very singular government in which

every member of the administration wishes to get out of the

country�察�and consequently to have done with the government as

soon as he can�察�and to whose interest�察�the day after he has left

it and carried his whole fortune with him�察�it is perfectly

indifferent though the whole country was swallowed up by an

earthquake。

     I mean not�察�however�察�by anything which I have here said�察�to

throw any odious imputation upon the general character of the

servants of the East India Company�察�and much less upon that of

any particular persons。 It is the system of government�察�the

situation in which they are placed�察�that I mean to censure�察�not

the character of those who have acted in it。 They acted as their

situation naturally directed�察�and they who have clamoured the

loudest against them would probably not have acted better

themselves。 In war and negotiation�察�the councils of Madras and

Calcutta have upon several occasions conducted themselves with a

resolution and decisive wisdom which would have done honour to

the senate of Rome in the best days of that republic。 The members

of those councils�察�however�察�had been bred to professions very

different from war and polities。 But their situation alone��

without education�察�experience�察�or even example�察�seems to have

formed in them all at once the great qualities which it required��

and to have inspired them both with abilities and virtues which

they themselves could not well know that they possessed。 If upon

some occasions�察�therefore�察�it has animated them to actions of

magnanimity which could not well have been expected from them�察�we

should not wonder if upon others it has prompted them to exploits

of somewhat a different nature。

     Such exclusive companies�察�therefore�察�are nuisances in every

respect�察�always more or less inconvenient to the countries in

which they are established�察�and destructive to those which have

the misfortune to fall under their government。



                            CHAPTER VIII



                Conclusion of the Mercantile System 



     THOUGH the encouragement of exportation and the

discouragement of importation are the two great engines by which

the mercantile system proposes to enrich every country�察�yet with

regard to some particular commodities it seems to follow an

opposite plan�此�to discourage exportation and to encourage

importation。 Its ultimate object�察�however�察�it pretends�察�is always

the same�察�to enrich the country by an advantageous balance of

trade。 It discourages the exportation of the materials of

manufacture�察�and of the instruments of trade�察�in order to give

our own workmen an advantage�察�and to enable them to undersell

those of other nations in all foreign markets�察�and by

restraining�察�in this manner�察�the exportation of a few

commodities�察�of no great price�察�it proposes to occasion a much

greater and more valuable exportation of others。 It encourages

the importation of the materials of manufacture in order that our

own people may be enabled to work them up more cheaply�察�and

thereby prevent a greater and more valuable importation of the

manufactured commodities。 I do not observe�察�at least in our

Statute Book�察�any encouragement given to the importation of the

instruments of trade。 When manufactures have advanced to a

certain pitch of greatness�察�the fabrication of the instruments of

trade becomes itself the object of a great number of very

important manufactures。 To give any particular encouragement to

the importation of such instruments would interfere too much with

the interest of those manufactures。 Such importation�察�therefore��

instead of being encouraged�察�has frequently been prohibited。 Thus

the importation of wool cards�察�except from Ireland�察�or when

brought in as wreck or prize goods�察�was prohibited by the 3rd of

Edward IV�察�which prohibition was renewed by the 39th of

Elizabeth�察�and has been continued and rendered perpetual by

subsequent laws。

     The importation of the materials of manufacture has

sometimes been encouraged by an exemption from the duties to

which other goods are subject�察�and sometimes by bounties。

     The importation of sheep's wool from several different

countries�察�of cotton wool from all countries�察�of undressed flax��

of the greater part of dyeing drugs�察�of the greater part of

undressed hi

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