1959 lines
87 KiB
Markdown
1959 lines
87 KiB
Markdown
# Extract Economic Entities
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You are an analytical economist specializing in classical economic theory.
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Your task is to extract distinct economic entities from a chapter of
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Adam Smith's *The Wealth of Nations*.
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## Source Chapter
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---
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id: book-4-chapter-08
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title: "CONCLUSION OF THE MERCANTILE SYSTEM."
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book: "4"
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chapter: 8
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artifact_type: content
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---
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CHAPTER VIII.
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CONCLUSION OF THE MERCANTILE SYSTEM.
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Though the encouragement of exportation, and the discouragement of
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importation, are the two great engines by which the mercantile system
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proposes to enrich every country, yet, with regard to some particular
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commodities, it seems to follow an opposite plan: to discourage
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exportation, and to encourage importation. Its ultimate object, however,
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it pretends, is always the same, to enrich the country by an advantageous
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balance of trade. It discourages the exportation of the materials of
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manufacture, and of the instruments of trade, in order to give our own
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workmen an advantage, and to enable them to undersell those of other
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nations in all foreign markets; and by restraining, in this manner, the
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exportation of a few commodities, of no great price, it proposes to
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occasion a much greater and more valuable exportation of others. It
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encourages the importation of the materials of manufacture, in order that
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our own people may be enabled to work them up more cheaply, and thereby
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prevent a greater and more valuable importation of the manufactured
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commodities. I do not observe, at least in our statute book, any
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encouragement given to the importation of the instruments of trade. When
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manufactures have advanced to a certain pitch of greatness, the
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fabrication of the instruments of trade becomes itself the object of a
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great number of very important manufactures. To give any particular
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encouragement to the importation of such instruments, would interfere too
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much with the interest of those manufactures. Such importation, therefore,
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instead of being encouraged, has frequently been prohibited. Thus the
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importation of wool cards, except from Ireland, or when brought in as
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wreck or prize goods, was prohibited by the 3rd of Edward IV.; which
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prohibition was renewed by the 39th of Elizabeth, and has been continued
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and rendered perpetual by subsequent laws.
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The importation of the materials of manufacture has sometimes been
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encouraged by an exemption from the duties to which other goods are
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subject, and sometimes by bounties.
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The importation of sheep’s wool from several different countries, of
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cotton wool from all countries, of undressed flax, of the greater part of
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dyeing drugs, of the greater part of undressed hides from Ireland, or the
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British colonies, of seal skins from the British Greenland fishery, of pig
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and bar iron from the British colonies, as well as of several other
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materials of manufacture, has been encouraged by an exemption from all
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duties, if properly entered at the custom-house. The private interest of
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our merchants and manufacturers may, perhaps, have extorted from the
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legislature these exemptions, as well as the greater part of our other
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commercial regulations. They are, however, perfectly just and reasonable;
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and if, consistently with the necessities of the state, they could be
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extended to all the other materials of manufacture, the public would
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certainly be a gainer.
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The avidity of our great manufacturers, however, has in some cases
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extended these exemptions a good deal beyond what can justly be considered
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as the rude materials of their work. By the 24th Geo. II. chap. 46, a
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small duty of only 1d. the pound was imposed upon the importation of
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foreign brown linen yarn, instead of much higher duties, to which it had
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been subjected before, viz. of 6d. the pound upon sail yarn, of 1s. the
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pound upon all French and Dutch yarn, and of £2:13:4 upon the hundred
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weight of all spruce or Muscovia yarn. But our manufacturers were not long
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satisfied with this reduction: by the 29th of the same king, chap. 15, the
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same law which gave a bounty upon the exportation of British and Irish
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linen, of which the price did not exceed 18d. the yard, even this small
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duty upon the importation of brown linen yarn was taken away. In the
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different operations, however, which are necessary for the preparation of
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linen yarn, a good deal more industry is employed, than in the subsequent
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operation of preparing linen cloth from linen yarn. To say nothing of the
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industry of the flax-growers and flaxdressers, three or four spinners at
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least are necessary in order to keep one weaver in constant employment;
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and more than four-fifths of the whole quantity of labour necessary for
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the preparation of linen cloth, is employed in that of linen yarn; but our
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spinners are poor people; women commonly scattered about in all different
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parts of the country, without support or protection. It is not by the sale
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of their work, but by that of the complete work of the weavers, that our
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great master manufacturers make their profits. As it is their interest to
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sell the complete manufacture as dear, so it is to buy the materials as
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cheap as possible. By extorting from the legislature bounties upon the
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exportation of their own linen, high duties upon the importation of all
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foreign linen, and a total prohibition of the home consumption of some
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sorts of French linen, they endeavour to sell their own goods as dear as
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possible. By encouraging the importation of foreign linen yarn, and
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thereby bringing it into competition with that which is made by our own
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people, they endeavour to buy the work of the poor spinners as cheap as
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possible. They are as intent to keep down the wages of their own weavers,
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as the earnings of the poor spinners; and it is by no means for the
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benefit of the workmen that they endeavour either to raise the price of
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the complete work, or to lower that of the rude materials. It is the
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industry which is carried on for the benefit of the rich and the powerful,
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that is principally encouraged by our mercantile system. That which is
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carried on for the benefit of the poor and the indigent is too often
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either neglected or oppressed.
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Both the bounty upon the exportation of linen, and the exemption from the
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duty upon the importation of foreign yarn, which were granted only for
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fifteen years, but continued by two different prolongations, expire with
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the end of the session of parliament which shall immediately follow the
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24th of June 1786.
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The encouragement given to the importation of the materials of manufacture
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by bounties, has been principally confined to such as were imported from
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our American plantations.
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The first bounties of this kind were those granted about the beginning of
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the present century, upon the importation of naval stores from America.
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Under this denomination were comprehended timber fit for masts, yards, and
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bowsprits; hemp, tar, pitch, and turpentine. The bounty, however, of £1
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the ton upon masting-timber, and that of £6 the ton upon hemp, were
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extended to such as should be imported into England from Scotland. Both
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these bounties continued, without any variation, at the same rate, till
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they were severally allowed to expire; that upon hemp on the 1st of
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January 1741, and that upon masting-timber at the end of the session of
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parliament immediately following the 24th June 1781.
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The bounties upon the importation of tar, pitch, and turpentine,
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underwent, during their continuance, several alterations. Originally, that
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upon tar was £4 the ton; that upon pitch the same; and that upon
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turpentine £3 the ton. The bounty of £4 the ton upon tar was afterwards
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confined to such as had been prepared in a particular manner; that upon
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other good, clean, and merchantable tar was reduced to £2:4s. the ton. The
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bounty upon pitch was likewise reduced to £1, and that upon turpentine to
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£1:10s. the ton.
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The second bounty upon the importation of any of the materials of
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manufacture, according to the order of time, was that granted by the 21st
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Geo. II. chap.30, upon the importation of indigo from the British
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plantations. When the plantation indigo was worth three-fourths of the
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price of the best French indigo, it was, by this act, entitled to a bounty
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of 6d. the pound. This bounty, which, like most others, was granted only
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for a limited time, was continued by several prolongations, but was
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reduced to 4d. the pound. It was allowed to expire with the end of the
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session of parliament which followed the 25th March 1781.
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The third bounty of this kind was that granted (much about the time that
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we were beginning sometimes to court, and sometimes to quarrel with our
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American colonies), by the 4th. Geo. III. chap. 26, upon the importation
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of hemp, or undressed flax, from the British plantations. This bounty was
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granted for twenty-one years, from the 24th June 1764 to the 24th June
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1785. For the first seven years, it was to be at the rate of £8 the ton;
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for the second at £6; and for the third at £4. It was not extended to
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Scotland, of which the climate (although hemp is sometimes raised there in
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small quantities, and of an inferior quality) is not very fit for that
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produce. Such a bounty upon the importation of Scotch flax in England
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would have been too great a discouragement to the native produce of the
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southern part of the united kingdom.
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The fourth bounty of this kind was that granted by the 5th Geo. III. chap.
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45, upon the importation of wood from America. It was granted for nine
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years from the 1st January 1766 to the 1st January 1775. During the first
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three years, it was to be for every hundred-and-twenty good deals, at the
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rate of £1, and for every load containing fifty cubic feet of other square
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timber, at the rate of 12s. For the second three years, it was for deals,
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to be at the rate of 15s., and for other squared timber at the rate of
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8s.; and for the third three years, it was for deals, to be at the rate of
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10s.; and for every other squared timber at the rate of 5s.
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The fifth bounty of this kind was that granted by the 9th Geo. III. chap.
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38, upon the importation of raw silk from the British plantations. It was
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granted for twenty-one years, from the 1st January 1770, to the 1st
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January 1791. For the first seven years, it was to be at the rate of £25
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for every hundred pounds value; for the second, at £20; and for the third,
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at £15. The management of the silk-worm, and the preparation of silk,
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requires so much hand-labour, and labour is so very dear in America, that
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even this great bounty, I have been informed, was not likely to produce
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any considerable effect.
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The sixth Bounty of this kind was that granted by 11th Geo. III. chap. 50,
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for the importation of pipe, hogshead, and barrelstaves and leading from
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the British plantations. It was granted for nine years, from 1st January
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1772 to the 1st January 1781. For the first three years, it was, for a
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certain quantity of each, to be at the rate of £6; for the second three
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years at £4; and for the third three years at £2.
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The seventh and last bounty of this kind was that granted by the 19th Geo.
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III chap. 37, upon the importation of hemp from Ireland. It was granted in
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the same manner as that for the importation of hemp and undressed flax
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from America, for twenty-one years, from the 24th June 1779 to the 24th
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June 1800. The term is divided likewise into three periods, of seven years
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each; and in each of those periods, the rate of the Irish bounty is the
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same with that of the American. It does not, however, like the American
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bounty, extend to the importation of undressed flax. It would have been
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too great a discouragement to the cultivation of that plant in Great
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Britain. When this last bounty was granted, the British and Irish
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legislatures were not in much better humour with one another, than the
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British and American had been before. But this boon to Ireland, it is to
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be hoped, has been granted under more fortunate auspices than all those to
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America. The same commodities, upon which we thus gave bounties, when
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imported from America, were subjected to considerable duties when imported
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from any other country. The interest of our American colonies was regarded
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as the same with that of the mother country. Their wealth was considered
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as our wealth. Whatever money was sent out to them, it was said, came all
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back to us by the balance of trade, and we could never become a farthing
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the poorer by any expense which we could lay out upon them. They were our
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own in every respect, and it was an expense laid out upon the improvement
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of our own property, and for the profitable employment of our own people.
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It is unnecessary, I apprehend, at present to say anything further, in
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order to expose the folly of a system which fatal experience has now
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sufficiently exposed. Had our American colonies really been a part of
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Great Britain, those bounties might have been considered as bounties upon
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production, and would still have been liable to all the objections to
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which such bounties are liable, but to no other.
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The exportation of the materials of manufacture is sometimes discouraged
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by absolute prohibitions, and sometimes by high duties.
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Our woollen manufacturers have been more successful than any other class
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of workmen, in persuading the legislature that the prosperity of the
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nation depended upon the success and extension of their particular
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business. They have not only obtained a monopoly against the consumers, by
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an absolute prohibition of importing woollen cloths from any foreign
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country; but they have likewise obtained another monopoly against the
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sheep farmers and growers of wool, by a similar prohibition of the
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exportation of live sheep and wool. The severity of many of the laws which
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have been enacted for the security of the revenue is very justly
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complained of, as imposing heavy penalties upon actions which, antecedent
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to the statutes that declared them to be crimes, had always been
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understood to be innocent. But the cruellest of our revenue laws, I will
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venture to affirm, are mild and gentle, in comparison to some of those
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which the clamour of our merchants and manufacturers has extorted from the
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legislature, for the support of their own absurd and oppressive
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monopolies. Like the laws of Draco, these laws may be said to be all
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written in blood.
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By the 8th of Elizabeth, chap. 3, the exporter of sheep, lambs, or rams,
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was for the first offence, to forfeit all his goods for ever, to suffer a
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year’s imprisonment, and then to have his left hand cut off in a market
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town, upon a market day, to be there nailed up; and for the second
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offence, to be adjudged a felon, and to suffer death accordingly. To
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prevent the breed of our sheep from being propagated in foreign countries,
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seems to have been the object of this law. By the 13th and 14th of Charles
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II. chap. 18, the exportation of wool was made felony, and the exporter
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subjected to the same penalties and forfeitures as a felon.
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For the honour of the national humanity, it is to be hoped that neither of
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these statutes was ever executed. The first of them, however, so far as I
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know, has never been directly repealed, and serjeant Hawkins seems to
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consider it as still in force. It may, however, perhaps be considered as
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virtually repealed by the 12th of Charles II. chap. 32, sect. 3, which,
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without expressly taking away the penalties imposed by former statutes,
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imposes a new penalty, viz. that of 20s. for every sheep exported, or
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attempted to be exported, together with the forfeiture of the sheep, and
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of the owner’s share of the sheep. The second of them was expressly
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repealed by the 7th and 8th of William III. chap. 28, sect. 4, by which it
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is declared that “Whereas the statute of the 13th and 14th of king Charles
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II. made against the exportation of wool, among other things in the said
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act mentioned, doth enact the same to be deemed felony, by the severity of
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which penalty the prosecution of offenders hath not been so effectually
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put in execution; be it therefore enacted, by the authority aforesaid,
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that so much of the said act, which relates to the making the said offence
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felony, be repealed and made void.”
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The penalties, however, which are either imposed by this milder statute,
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or which, though imposed by former statutes, are not repealed by this one,
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are still sufficiently severe. Besides the forfeiture of the goods, the
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exporter incurs the penalty of 3s. for every pound weight of wool, either
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exported or attempted to be exported, that is, about four or five times
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the value. Any merchant, or other person convicted of this offence, is
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disabled from requiring any debt or account belonging to him from any
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factor or other person. Let his fortune be what it will, whether he is or
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is not able to pay those heavy penalties, the law means to ruin him
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completely. But, as the morals of the great body of the people are not yet
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so corrupt as those of the contrivers of this statute, I have not heard
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that any advantage has ever been taken of this clause. If the person
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convicted of this offence is not able to pay the penalties within three
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months after judgment, he is to be transported for seven years; and if he
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returns before the expiration of that term, he is liable to the pains of
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felony, without benefit of clergy. The owner of the ship, knowing this
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offence, forfeits all his interest in the ship and furniture. The master
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and mariners, knowing this offence, forfeit all their goods and chattels,
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and suffer three months imprisonment. By a subsequent statute, the master
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suffers six months imprisonment.
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In order to prevent exportation, the whole inland commerce of wool is laid
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under very burdensome and oppressive restrictions. It cannot be packed in
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any box, barrel, cask, case, chest, or any other package, but only in
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packs of leather or pack-cloth, on which must be marked on the outside the
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words WOOL or YARN, in large letters, not less than three inches long, on
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pain of forfeiting the same and the package, and 8s. for every pound
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weight, to be paid by the owner or packer. It cannot be loaden on any
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horse or cart, or carried by land within five miles of the coast, but
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between sun-rising, and sun-setting, on pain of forfeiting the same, the
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horses and carriages. The hundred next adjoining to the sea coast, out of,
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or through which the wool is carried or exported, forfeits £20, if the
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wool is under the value of £10; and if of greater value, then treble that
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value, together with treble costs, to be sued for within the year. The
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execution to be against any two of the inhabitants, whom the sessions must
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reimburse, by an assessment on the other inhabitants, as in the cases of
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robbery. And if any person compounds with the hundred for less than this
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penalty, he is to be imprisoned for five years; and any other person may
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prosecute. These regulations take place through the whole kingdom.
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But in the particular counties of Kent and Sussex, the restrictions are
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still more troublesome. Every owner of wool within ten miles of the sea
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coast must give an account in writing, three days after shearing, to the
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next officer of the customs, of the number of his fleeces, and of the
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places where they are lodged. And before he removes any part of them, he
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must give the like notice of the number and weight of the fleeces, and of
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the name and abode of the person to whom they are sold, and of the place
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to which it is intended they should be carried. No person within fifteen
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miles of the sea, in the said counties, can buy any wool, before he enters
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into bond to the king, that no part of the wool which he shall so buy
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shall be sold by him to any other person within fifteen miles of the sea.
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If any wool is found carrying towards the sea side in the said counties,
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unless it has been entered and security given as aforesaid, it is
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forfeited, and the offender also forfeits 3s. for every pound weight, if
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any person lay any wool, not entered as aforesaid, within fifteen miles of
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the sea, it must be seized and forfeited; and if, after such seizure, any
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person shall claim the same, he must give security to the exchequer, that
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if he is cast upon trial he shall pay treble costs, besides all other
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penalties.
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When such restrictions are imposed upon the inland trade, the coasting
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trade, we may believe, cannot be left very free. Every owner of wool, who
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carrieth, or causeth to be carried, any wool to any port or place on the
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sea coast, in order to be from thence transported by sea to any other
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place or port on the coast, must first cause an entry thereof to be made
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at the port from whence it is intended to be conveyed, containing the
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weight, marks, and number, of the packages, before he brings the same
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within five miles of that port, on pain of forfeiting the same, and also
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the horses, carts, and other carriages; and also of suffering and
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forfeiting, as by the other laws in force against the exportation of wool.
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This law, however (1st of William III. chap. 32), is so very indulgent as
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to declare, that this shall not hinder any person from carrying his wool
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home from the place of shearing, though it be within five miles of the
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sea, provided that in ten days after shearing, and before he remove the
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wool, he do under his hand certify to the next officer of the customs the
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true number of fleeces, and where it is housed; and do not remove the
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same, without certifying to such officer, under his hand, his intention so
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to do, three days before. Bond must be given that the wool to be carried
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coast-ways is to be landed at the particular port for which it is entered
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outwards; and if my part of it is landed without the presence of an
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officer, not only the forfeiture of the wool is incurred, as in other
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goods, but the usual additional penalty of 3s. for every pound weight is
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likewise incurred.
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Our woollen manufacturers, in order to justify their demand of such
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extraordinary restrictions and regulations, confidently asserted, that
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English wool was of a peculiar quality, superior to that of any other
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country; that the wool of other countries could not, without some mixture
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of it, be wrought up into any tolerable manufacture; that fine cloth could
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not be made without it; that England, therefore, if the exportation of it
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could be totally prevented, could monopolize to herself almost the whole
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woollen trade of the world; and thus, having no rivals, could sell at what
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price she pleased, and in a short time acquire the most incredible degree
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of wealth by the most advantageous balance of trade. This doctrine, like
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most other doctrines which are confidently asserted by any considerable
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number of people, was, and still continues to be, most implicitly believed
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by a much greater number: by almost all those who are either unacquainted
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with the woollen trade, or who have not made particular inquiries. It is,
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however, so perfectly false, that English wool is in any respect necessary
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for the making of fine cloth, that it is altogether unfit for it. Fine
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cloth is made altogether of Spanish wool. English wool, cannot be even so
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mixed with Spanish wool, as to enter into the composition without spoiling
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and degrading, in some degree, the fabric of the cloth.
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It has been shown in the foregoing part of this work, that the effect of
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these regulations has been to depress the price of English wool, not only
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below what it naturally would be in the present times, but very much below
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what it actually was in the time of Edward III. The price of Scotch wool,
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when, in consequence of the Union, it became subject to the same
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||
regulations, is said to have fallen about one half. It is observed by the
|
||
very accurate and intelligent author of the Memoirs of Wool, the Reverend
|
||
Mr John Smith, that the price of the best English wool in England, is
|
||
generally below what wool of a very inferior quality commonly sells for in
|
||
the market of Amsterdam. To depress the price of this commodity below what
|
||
may be called its natural and proper price, was the avowed purpose of
|
||
those regulations; and there seems to be no doubt of their having produced
|
||
the effect that was expected from them.
|
||
|
||
This reduction of price, it may perhaps be thought, by discouraging the
|
||
growing of wool, must have reduced very much the annual produce of that
|
||
commodity, though not below what it formerly was, yet below what, in the
|
||
present state of things, it would probably have been, had it, in
|
||
consequence of an open and free market, been allowed to rise to the
|
||
natural and proper price. I am, however, disposed to believe, that the
|
||
quantity of the annual produce cannot have been much, though it may,
|
||
perhaps, have been a little affected by these regulations. The growing of
|
||
wool is not the chief purpose for which the sheep farmer employs his
|
||
industry and stock. He expects his profit, not so much from the price of
|
||
the fleece, as from that of the carcase; and the average or ordinary price
|
||
of the latter must even, in many cases, make up to him whatever deficiency
|
||
there may be in the average or ordinary price of the former. It has been
|
||
observed, in the foregoing part of this work, that ‘whatever regulations
|
||
tend to sink the price, either of wool or of raw hides, below what it
|
||
naturally would be, must, in an improved and cultivated country, have some
|
||
tendency to raise the price of butcher’s meat. The price, both of the
|
||
great and small cattle which are fed on improved and cultivated land, must
|
||
be sufficient to pay the rent which the landlord, and the profit which the
|
||
farmer, has reason to expect from improved and cultivated land. If it is
|
||
not, they will soon cease to feed them. Whatever part of this price,
|
||
therefore, is not paid by the wool and the hide, must be paid by the
|
||
carcase. The less there is paid for the one, the more must be paid for the
|
||
other. In what manner this price is to be divided upon the different parts
|
||
of the beast, is indifferent to the landlords and farmers, provided it is
|
||
all paid to them. In an improved and cultivated country, therefore, their
|
||
interest as landlords and farmers cannot be much affected by such
|
||
regulations, though their interest as consumers may, by the rise in the
|
||
price of provisions.’ According to this reasoning, therefore, this
|
||
degradation in the price of wool is not likely, in an improved and
|
||
cultivated country, to occasion any diminution in the annual produce of
|
||
that commodity; except so far as, by raising the price of mutton, it may
|
||
somewhat diminish the demand for, and consequently the production of, that
|
||
particular species of butcher’s meat, Its effect, however, even in this
|
||
way, it is probable, is not very considerable.
|
||
|
||
But though its effect upon the quantity of the annual produce may not have
|
||
been very considerable, its effect upon the quality, it may perhaps be
|
||
thought, must necessarily have been very great. The degradation in the
|
||
quality of English wool, if not below what it was in former times, yet
|
||
below what it naturally would have been in the present state of
|
||
improvement and cultivation, must have been, it may perhaps be supposed,
|
||
very nearly in proportion to the degradation of price. As the quality
|
||
depends upon the breed, upon the pasture, and upon the management and
|
||
cleanliness of the sheep, during the whole progress of the growth of the
|
||
fleece, the attention to these circumstances, it may naturally enough be
|
||
imagined, can never be greater than in proportion to the recompence which
|
||
the price of the fleece is likely to make for the labour and expense which
|
||
that attention requires. It happens, however, that the goodness of the
|
||
fleece depends, in a great measure, upon the health, growth, and bulk of
|
||
the animal: the same attention which is necessary for the improvement of
|
||
the carcase is, in some respect, sufficient for that of the fleece.
|
||
Notwithstanding the degradation of price, English wool is said to have
|
||
been improved considerably during the course even of the present century.
|
||
The improvement, might, perhaps, have been greater if the price had been
|
||
better; but the lowness of price, though it may have obstructed, yet
|
||
certainly it has not altogether prevented that improvement.
|
||
|
||
The violence of these regulations, therefore, seems to have affected
|
||
neither the quantity nor the quality of the annual produce of wool, so
|
||
much as it might have been expected to do (though I think it probable that
|
||
it may have affected the latter a good deal more than the former); and the
|
||
interest of the growers of wool, though it must have been hurt in some
|
||
degree, seems upon the whole, to have been much less hurt than could well
|
||
have been imagined.
|
||
|
||
These considerations, however, will not justify the absolute prohibition
|
||
of the exportation of wool; but they will fully justify the imposition of
|
||
a considerable tax upon that exportation.
|
||
|
||
To hurt, in any degree, the interest of any one order of citizens, for no
|
||
other purpose but to promote that of some other, is evidently contrary to
|
||
that justice and equality of treatment which the sovereign owes to all the
|
||
different orders of his subjects. But the prohibition certainly hurts, in
|
||
some degree, the interest of the growers of wool, for no other purpose but
|
||
to promote that of the manufacturers.
|
||
|
||
Every different order of citizens is bound to contribute to the support of
|
||
the sovereign or commonwealth. A tax of five, or even of ten shillings,
|
||
upon the exportation of every tod of wool, would produce a very
|
||
considerable revenue to the sovereign. It would hurt the interest of the
|
||
growers somewhat less than the prohibition, because it would not probably
|
||
lower the price of wool quite so much. It would afford a sufficient
|
||
advantage to the manufacturer, because, though he might not buy his wool
|
||
altogether so cheap as under the prohibition, he would still buy it at
|
||
least five or ten shillings cheaper than any foreign manufacturer could
|
||
buy it, besides saving the freight and insurance which the other would be
|
||
obliged to pay. It is scarce possible to devise a tax which could produce
|
||
any considerable revenue to the sovereign, and at the same time occasion
|
||
so little inconveniency to anybody.
|
||
|
||
The prohibition, notwithstanding all the penalties which guard it, does
|
||
not prevent the exportation of wool. It is exported, it is well known, in
|
||
great quantities. The great difference between the price in the home and
|
||
that in the foreign market, presents such a temptation to smuggling, that
|
||
all the rigour of the law cannot prevent it. This illegal exportation is
|
||
advantageous to nobody but the smuggler. A legal exportation, subject to a
|
||
tax, by affording a revenue to the sovereign, and thereby saving the
|
||
imposition of some other, perhaps more burdensome and inconvenient taxes,
|
||
might prove advantageous to all the different subjects of the state.
|
||
|
||
The exportation of fuller’s earth, or fuller’s clay, supposed to be
|
||
necessary for preparing and cleansing the woollen manufactures, has been
|
||
subjected to nearly the same penalties as the exportation of wool. Even
|
||
tobacco-pipe clay, though acknowledged to be different from fuller’s clay,
|
||
yet, on account of their resemblance, and because fuller’s clay might
|
||
sometimes be exported as tobacco-pipe clay, has been laid under the same
|
||
prohibitions and penalties.
|
||
|
||
By the 13th and 14th of Charles II. chap, 7, the exportation, not only of
|
||
raw hides, but of tanned leather, except in the shape of boots, shoes, or
|
||
slippers, was prohibited; and the law gave a monopoly to our boot-makers
|
||
and shoe-makers, not only against our graziers, but against our tanners.
|
||
By subsequent statutes, our tanners have got themselves exempted from this
|
||
monopoly, upon paying a small tax of only one shilling on the hundred
|
||
weight of tanned leather, weighing one hundred and twelve pounds. They
|
||
have obtained likewise the drawback of two-thirds of the excise duties
|
||
imposed upon their commodity, even when exported without further
|
||
manufacture. All manufactures of leather may be exported duty free; and
|
||
the exporter is besides entitled to the drawback of the whole duties of
|
||
excise. Our graziers still continue subject to the old monopoly. Graziers,
|
||
separated from one another, and dispersed through all the different
|
||
corners of the country, cannot, without great difficulty, combine together
|
||
for the purpose either of imposing monopolies upon their fellow-citizens,
|
||
or of exempting themselves from such as may have been imposed upon them by
|
||
other people. Manufacturers of all kinds, collected together in numerous
|
||
bodies in all great cities, easily can. Even the horns of cattle are
|
||
prohibited to be exported; and the two insignificant trades of the horner
|
||
and comb-maker enjoy, in this respect, a monopoly against the graziers.
|
||
|
||
Restraints, either by prohibitions, or by taxes, upon the exportation of
|
||
goods which are partially, but not completely manufactured, are not
|
||
peculiar to the manufacture of leather. As long as anything remains to be
|
||
done, in order to fit any commodity for immediate use and consumption, our
|
||
manufacturers think that they themselves ought to have the doing of it.
|
||
Woollen yarn and worsted are prohibited to be exported, under the same
|
||
penalties as wool even white cloths we subject to a duty upon exportation;
|
||
and our dyers have so far obtained a monopoly against our clothiers. Our
|
||
clothiers would probably have been able to defend themselves against it;
|
||
but it happens that the greater part of our principal clothiers are
|
||
themselves likewise dyers. Watch-cases, clock-cases, and dial-plates for
|
||
clocks and watches, have been prohibited to be exported. Our clock-makers
|
||
and watch-makers are, it seems, unwilling that the price of this sort of
|
||
workmanship should be raised upon them by the competition of foreigners.
|
||
|
||
By some old statutes of Edward III, Henry VIII. and Edward VI. the
|
||
exportation of all metals was prohibited. Lead and tin were alone
|
||
excepted, probably on account of the great abundance of those metals; in
|
||
the exportation of which a considerable part of the trade of the kingdom
|
||
in those days consisted. For the encouragement of the mining trade, the
|
||
5th of William and Mary, chap.17, exempted from this prohibition iron,
|
||
copper, and mundic metal made from British ore. The exportation of all
|
||
sorts of copper bars, foreign as well as British, was afterwards permitted
|
||
by the 9th and 10th of William III. chap 26. The exportation of
|
||
unmanufactured brass, of what is called gun-metal, bell-metal, and shroff
|
||
metal, still continues to be prohibited. Brass manufactures of all sorts
|
||
may be exported duty free.
|
||
|
||
The exportation of the materials of manufacture, where it is not
|
||
altogether prohibited, is, in many cases, subjected to considerable
|
||
duties.
|
||
|
||
By the 8th Geo. I. chap.15, the exportation of all goods, the produce of
|
||
manufacture of Great Britain, upon which any duties had been imposed by
|
||
former statutes, was rendered duty free. The following goods, however,
|
||
were excepted: alum, lead, lead-ore, tin, tanned leather, copperas, coals,
|
||
wool, cards, white woollen cloths, lapis calaminaris, skins of all sorts,
|
||
glue, coney hair or wool, hares wool, hair of all sorts, horses, and
|
||
litharge of lead. If you except horses, all these are either materials of
|
||
manufacture, or incomplete manufactures (which may be considered as
|
||
materials for still further manufacture), or instruments of trade. This
|
||
statute leaves them subject to all the old duties which had ever been
|
||
imposed upon them, the old subsidy, and one per cent. outwards.
|
||
|
||
By the same statute, a great number of foreign drugs for dyers use are
|
||
exempted from all duties upon importation. Each of them, however, is
|
||
afterwards subjected to a certain duty, not indeed a very heavy one, upon
|
||
exportation. Our dyers, it seems, while they thought it for their interest
|
||
to encourage the importation of those drugs, by an exemption from all
|
||
duties, thought it likewise for their own interest to throw some small
|
||
discouragement upon their exportation. The avidity, however, which
|
||
suggested this notable piece of mercantile ingenuity, most probably
|
||
disappointed itself of its object. It necessarily taught the importers to
|
||
be more careful than they might otherwise have been, that their
|
||
importation should not exceed what was necessary for the supply of the
|
||
home market. The home market was at all times likely to be more scantily
|
||
supplied; the commodities were at all times likely to be somewhat dearer
|
||
there than they would have been, had the exportation been rendered as free
|
||
as the importation.
|
||
|
||
By the above-mentioned statute, gum senega, or gum arabic, being among the
|
||
enumerated dyeing drugs, might be imported duty free. They were subjected,
|
||
indeed, to a small poundage duty, amounting only to threepence in the
|
||
hundred weight, upon their re-exportation. France enjoyed, at that time,
|
||
an exclusive trade to the country most productive of those drugs, that
|
||
which lies in the neighbourhood of the Senegal; and the British market
|
||
could not be easily supplied by the immediate importation of them from the
|
||
place of growth. By the 25th Geo. II. therefore, gum senega was allowed to
|
||
be imported (contrary to the general dispositions of the act of
|
||
navigation) from any part of Europe. As the law, however, did not mean to
|
||
encourage this species of trade, so contrary to the general principles of
|
||
the mercantile policy of England, it imposed a duty of ten shillings the
|
||
hundred weight upon such importation, and no part of this duty was to be
|
||
afterwards drawn back upon its exportation. The successful war which began
|
||
in 1755 gave Great Britain the same exclusive trade to those countries
|
||
which France had enjoyed before. Our manufactures, as soon as the peace
|
||
was made, endeavoured to avail themselves of this advantage, and to
|
||
establish a monopoly in their own favour both against the growers and
|
||
against the importers of this commodity. By the 5th of Geo. III.
|
||
therefore, chap. 37, the exportation of gum senega, from his majesty’s
|
||
dominions in Africa, was confined to Great Britain, and was subjected to
|
||
all the same restrictions, regulations, forfeitures, and penalties, as
|
||
that of the enumerated commodities of the British colonies in America and
|
||
the West Indies. Its importation, indeed, was subjected to a small duty of
|
||
sixpence the hundred weight; but its re-exportation was subjected to the
|
||
enormous duty of one pound ten shillings the hundred weight. It was the
|
||
intention of our manufacturers, that the whole produce of those countries
|
||
should be imported into Great Britain; and in order that they themselves
|
||
might be enabled to buy it at their own price, that no part of it should
|
||
be exported again, but at such an expense as would sufficiently discourage
|
||
that exportation. Their avidity, however, upon this, as well as upon many
|
||
other occasions, disappointed itself of its object. This enormous duty
|
||
presented such a temptation to smuggling, that great quantities of this
|
||
commodity were clandestinely exported, probably to all the manufacturing
|
||
countries of Europe, but particularly to Holland, not only from Great
|
||
Britain, but from Africa. Upon this account, by the 14th Geo. III.
|
||
chap.10, this duty upon exportation was reduced to five shillings the
|
||
hundred weight.
|
||
|
||
In the book of rates, according to which the old subsidy was levied,
|
||
beaver skins were estimated at six shillings and eight pence a piece; and
|
||
the different subsidies and imposts which, before the year 1722, had been
|
||
laid upon their importation, amounted to one-fifth part of the rate, or to
|
||
sixteen pence upon each skin; all of which, except half the old subsidy,
|
||
amounting only to twopence, was drawn back upon exportation. This duty,
|
||
upon the importation of so important a material of manufacture, had been
|
||
thought too high; and, in the year 1722, the rate was reduced to two
|
||
shillings and sixpence, which reduced the duty upon importation to
|
||
sixpence, and of this only one-half was to be drawn back upon exportation.
|
||
The same successful war put the country most productive of beaver under
|
||
the dominion of Great Britain; and beaver skins being among the enumerated
|
||
commodities, the exportation from America was consequently confined to the
|
||
market of Great Britain. Our manufacturers soon bethought themselves of
|
||
the advantage which they might make of this circumstance; and in the year
|
||
1764, the duty upon the importation of beaver skin was reduced to one
|
||
penny, but the duty upon exportation was raised to sevenpence each skin,
|
||
without any drawback of the duty upon importation. By the same law, a duty
|
||
of eighteen pence the pound was imposed upon the exportation of beaver
|
||
wool or woumbs, without making any alteration in the duty upon the
|
||
importation of that commodity, which, when imported by British, and in
|
||
British shipping, amounted at that time to between fourpence and fivepence
|
||
the piece.
|
||
|
||
Coals may be considered both as a material of manufacture, and as an
|
||
instrument of trade. Heavy duties, accordingly, have been imposed upon
|
||
their exportation, amounting at present (1783) to more than five shillings
|
||
the ton, or more than fifteen shillings the chaldron, Newcastle measure;
|
||
which is, in most cases, more than the original value of the commodity at
|
||
the coal-pit, or even at the shipping port for exportation.
|
||
|
||
The exportation, however, of the instruments of trade, properly so called,
|
||
is commonly restrained, not by high duties, but by absolute prohibitions.
|
||
Thus, by the 7th and 8th of William III chap.20, sect.8, the exportation
|
||
of frames or engines for knitting gloves or stockings, is prohibited,
|
||
under the penalty, not only of the forfeiture of such frames or engines,
|
||
so exported, or attempted to be exported, but of forty pounds, one half to
|
||
the king, the other to the person who shall inform or sue for the same. In
|
||
the same manner, by the 14th Geo. III. chap. 71, the exportation to
|
||
foreign parts, of any utensils made use of in the cotton, linen, woollen,
|
||
and silk manufactures, is prohibited under the penalty, not only of the
|
||
forfeiture of such utensils, but of two hundred pounds, to be paid by the
|
||
person who shall offend in this manner; and likewise of two hundred
|
||
pounds, to be paid by the master of the ship, who shall knowingly suffer
|
||
such utensils to be loaded on board his ship.
|
||
|
||
When such heavy penalties were imposed upon the exportation of the dead
|
||
instruments of trade, it could not well be expected that the living
|
||
instrument, the artificer, should be allowed to go free. Accordingly, by
|
||
the 5th Geo. I. chap. 27, the person who shall be convicted of enticing
|
||
any artificer, of or in any of the manufactures of Great Britain, to go
|
||
into any foreign parts, in order to practise or teach his trade, is
|
||
liable, for the first offence, to be fined in any sum not exceeding one
|
||
hundred pounds, and to three months imprisonment, and until the fine shall
|
||
be paid; and for the second offence, to be fined in any sum, at the
|
||
discretion of the court, and to imprisonment for twelve months, and until
|
||
the fine shall be paid. By the 23d Geo. II. chap. 13, this penalty is
|
||
increased, for the first offence, to five hundred pounds for every
|
||
artificer so enticed, and to twelve months imprisonment, and until the
|
||
fine shall be paid; and for the second offence, to one thousand pounds,
|
||
and to two years imprisonment, and until the fine shall be paid.
|
||
|
||
By the former of these two statutes, upon proof that any person has been
|
||
enticing any artificer, or that any artificer has promised or contracted
|
||
to go into foreign parts, for the purposes aforesaid, such artificer may
|
||
be obliged to give security, at the discretion of the court, that he shall
|
||
not go beyond the seas, and may be committed to prison until he give such
|
||
security.
|
||
|
||
If any artificer has gone beyond the seas, and is exercising or teaching
|
||
his trade in any foreign country, upon warning being given to him by any
|
||
of his majesty’s ministers or consuls abroad, or by one of his majesty’s
|
||
secretaries of state, for the time being, if he does not, within six
|
||
months after such warning, return into this realm, and from henceforth
|
||
abide and inhabit continually within the same, he is from thenceforth
|
||
declared incapable of taking any legacy devised to him within this
|
||
kingdom, or of being executor or administrator to any person, or of taking
|
||
any lands within this kingdom, by descent, devise, or purchase. He
|
||
likewise forfeits to the king all his lands, goods, and chattels; is
|
||
declared an alien in every respect; and is put out of the king’s
|
||
protection.
|
||
|
||
It is unnecessary, I imagine, to observe how contrary such regulations are
|
||
to the boasted liberty of the subject, of which we affect to be so very
|
||
jealous; but which, in this case, is so plainly sacrificed to the futile
|
||
interests of our merchants and manufacturers.
|
||
|
||
The laudable motive of all these regulations, is to extend our own
|
||
manufactures, not by their own improvement, but by the depression of those
|
||
of all our neighbours, and by putting an end, as much as possible, to the
|
||
troublesome competition of such odious and disagreeable rivals. Our master
|
||
manufacturers think it reasonable that they themselves should have the
|
||
monopoly of the ingenuity of all their countrymen. Though by restraining,
|
||
in some trades, the number of apprentices which can be employed at one
|
||
time, and by imposing the necessity of a long apprenticeship in all
|
||
trades, they endeavour, all of them, to confine the knowledge of their
|
||
respective employments to as small a number as possible; they are
|
||
unwilling, however, that any part of this small number should go abroad to
|
||
instruct foreigners.
|
||
|
||
Consumption is the sole end and purpose of all production; and the
|
||
interest of the producer ought to be attended to, only so far as it may be
|
||
necessary for promoting that of the consumer.
|
||
|
||
The maxim is so perfectly self-evident, that it would be absurd to attempt
|
||
to prove it. But in the mercantile system, the interest of the consumer is
|
||
almost constantly sacrificed to that of the producer; and it seems to
|
||
consider production, and not consumption, as the ultimate end and object
|
||
of all industry and commerce.
|
||
|
||
In the restraints upon the importation of all foreign commodities which
|
||
can come into competition with those of our own growth or manufacture, the
|
||
interest of the home consumer is evidently sacrificed to that of the
|
||
producer. It is altogether for the benefit of the latter, that the former
|
||
is obliged to pay that enhancement of price which this monopoly almost
|
||
always occasions.
|
||
|
||
It is altogether for the benefit of the producer, that bounties are
|
||
granted upon the exportation of some of his productions. The home consumer
|
||
is obliged to pay, first the tax which is necessary for paying the bounty;
|
||
and, secondly, the still greater tax which necessarily arises from the
|
||
enhancement of the price of the commodity in the home market.
|
||
|
||
By the famous treaty of commerce with Portugal, the consumer is prevented
|
||
by duties from purchasing of a neighbouring country, a commodity which our
|
||
own climate does not produce; but is obliged to purchase it of a distant
|
||
country, though it is acknowledged, that the commodity of the distant
|
||
country is of a worse quality than that of the near one. The home consumer
|
||
is obliged to submit to this inconvenience, in order that the producer may
|
||
import into the distant country some of his productions, upon more
|
||
advantageous terms than he otherwise would have been allowed to do. The
|
||
consumer, too, is obliged to pay whatever enhancement in the price of
|
||
those very productions this forced exportation may occasion in the home
|
||
market.
|
||
|
||
But in the system of laws which has been established for the management of
|
||
our American and West Indian colonies, the interest of the home consumer
|
||
has been sacrificed to that of the producer, with a more extravagant
|
||
profusion than in all our other commercial regulations. A great empire has
|
||
been established for the sole purpose of raising up a nation of customers,
|
||
who should be obliged to buy, from the shops of our different producers,
|
||
all the goods with which these could supply them. For the sake of that
|
||
little enhancement of price which this monopoly might afford our
|
||
producers, the home consumers have been burdened with the whole expense of
|
||
maintaining and defending that empire. For this purpose, and for this
|
||
purpose only, in the two last wars, more than two hundred millions have
|
||
been spent, and a new debt of more than a hundred and seventy millions has
|
||
been contracted, over and above all that had been expended for the same
|
||
purpose in former wars. The interest of this debt alone is not only
|
||
greater than the whole extraordinary profit which, it never could be
|
||
pretended, was made by the monopoly of the colony trade, but than the
|
||
whole value of that trade, or than the whole value of the goods which, at
|
||
an average, have been annually exported to the colonies.
|
||
|
||
It cannot be very difficult to determine who have been the contrivers of
|
||
this whole mercantile system; not the consumers, we may believe, whose
|
||
interest has been entirely neglected; but the producers, whose interest
|
||
has been so carefully attended to; and among this latter class, our
|
||
merchants and manufacturers have been by far the principal architects. In
|
||
the mercantile regulations which have been taken notice of in this
|
||
chapter, the interest of our manufacturers has been most peculiarly
|
||
attended to; and the interest, not so much of the consumers, as that of
|
||
some other sets of producers, has been sacrificed to it.
|
||
|
||
|
||
## Extraction Guidelines
|
||
|
||
---
|
||
id: extraction-rules
|
||
name: extraction_rules
|
||
artifact_type: content
|
||
description: Guidelines for extracting economic entities from source text
|
||
version: 1.0.0
|
||
---
|
||
|
||
# Entity Extraction Rules
|
||
|
||
## What Constitutes an Entity
|
||
|
||
An economic entity is a distinct concept, actor, mechanism, or institution
|
||
that plays a functional role in Adam Smith's economic analysis. Extract
|
||
entities at the level of specificity where they carry independent meaning.
|
||
|
||
## Extraction Criteria
|
||
|
||
1. **Concepts**: Abstract economic ideas (e.g., "division of labour",
|
||
"effectual demand", "natural price"). Extract when Smith defines,
|
||
explains, or argues about the concept.
|
||
|
||
2. **Actors**: Economic agents with defined roles (e.g., "the labourer",
|
||
"the merchant", "the sovereign"). Extract when the actor performs
|
||
a distinct economic function.
|
||
|
||
3. **Mechanisms**: Processes or dynamics that produce economic effects
|
||
(e.g., "accumulation of stock", "market price adjustment",
|
||
"foreign trade"). Extract when the mechanism is described as
|
||
producing specific outcomes.
|
||
|
||
4. **Institutions**: Organised structures that shape economic behaviour
|
||
(e.g., "the corporation", "the guild", "the joint-stock company").
|
||
Extract when the institution's economic function is described.
|
||
|
||
## Granularity Rules
|
||
|
||
- Extract at the level of a single coherent concept.
|
||
- Do NOT extract synonyms as separate entities — choose the primary term
|
||
Smith uses and note variations.
|
||
- DO extract distinct aspects of a broad concept as separate entities when
|
||
Smith treats them independently (e.g., "wages of labour" and "profits
|
||
of stock" are separate from "price of commodities" even though they
|
||
compose it).
|
||
- If an entity appears across multiple chapters, extract it on first
|
||
significant appearance and note cross-references in later chapters.
|
||
|
||
## Naming Conventions
|
||
|
||
- Use Smith's own terminology where possible.
|
||
- Normalise to lowercase except for proper nouns.
|
||
- Use the most common form Smith uses (e.g., "division of labour" not
|
||
"divided labour").
|
||
|
||
## Quality Checks
|
||
|
||
- Each entity must have a definition that would be comprehensible without
|
||
reading the source chapter.
|
||
- Each entity must cite the specific book and chapter of first appearance.
|
||
- **Economic Domain** must be EXACTLY ONE of: Production, Distribution,
|
||
Exchange, Consumption, Accumulation, Regulation, or General Theory.
|
||
Do not combine multiple domains. Do not use any other value.
|
||
- **Source Chapter format**: Use `Book [Roman numeral], Chapter [number]`
|
||
— for example `Book I, Chapter 3`. Do not include the chapter title,
|
||
quotation marks, markdown formatting, or asterisks. Use Roman numerals
|
||
for the book (I, II, III, IV, V).
|
||
|
||
|
||
## VSM Framework Context
|
||
|
||
Use the following VSM framework as context to guide your extraction.
|
||
Prioritize entities that are likely to have clear mappings to VSM concepts,
|
||
but do not exclude entities simply because they lack an obvious mapping.
|
||
|
||
---
|
||
id: vsm-framework
|
||
name: vsm_framework
|
||
artifact_type: content
|
||
description: Stafford Beer's Viable System Model reference for economic analysis
|
||
version: 1.0.0
|
||
---
|
||
|
||
# Stafford Beer's Viable System Model (VSM)
|
||
|
||
The Viable System Model (VSM) is a model of the organisational structure of any
|
||
autonomous system capable of producing itself. It was created by management
|
||
cybernetician Stafford Beer in his books *Brain of the Firm* (1972) and
|
||
*The Heart of Enterprise* (1979).
|
||
|
||
## Core Principle: Viability
|
||
|
||
A viable system is any system organised in such a way as to meet the demands
|
||
of surviving in a changing environment. One of the prime features of systems
|
||
that survive is that they are adaptable. The VSM expresses a model for a
|
||
viable system, which is an abstracted cybernetic description applicable to
|
||
any organisation that is a going concern.
|
||
|
||
## The Five Systems
|
||
|
||
### System 1 (S1) — Operations
|
||
|
||
The primary activities that produce the organisation's purpose. These are the
|
||
operational units that directly create value. Each operational element is itself
|
||
a viable system (the principle of recursion).
|
||
|
||
**In economic terms:** Productive enterprises, factories, farms, workshops,
|
||
individual labourers performing specialised tasks, merchant operations.
|
||
|
||
**Key properties:** Autonomy within constraints, self-organisation,
|
||
direct engagement with the environment.
|
||
|
||
### System 2 (S2) — Coordination
|
||
|
||
The information channels and bodies that allow the primary activities in
|
||
System 1 to communicate with each other and that allow System 3 to monitor
|
||
and coordinate activities. System 2 dampens oscillations and resolves
|
||
conflicts between operational units.
|
||
|
||
**In economic terms:** Market price mechanisms, trade customs, standard
|
||
weights and measures, commercial law, banking clearinghouses, trade guilds.
|
||
|
||
**Key properties:** Anti-oscillatory, dampening, scheduling, conflict
|
||
resolution, standardisation.
|
||
|
||
### System 3 (S3) — Control / Operational Management
|
||
|
||
The structures and controls that establish the rules, resources, rights,
|
||
and responsibilities of System 1 and provide an interface between Systems 1
|
||
and Systems 4/5. System 3 represents the day-to-day control of the
|
||
organisation. It optimises the internal environment.
|
||
|
||
**In economic terms:** Government regulation of trade, taxation policy, labour
|
||
laws, enforcement of contracts, the "invisible hand" as emergent internal
|
||
regulation, guilds and corporations governing members.
|
||
|
||
**Key properties:** Internal regulation, resource allocation, accountability,
|
||
synergy extraction, performance management.
|
||
|
||
### System 3* (S3*) — Audit / Monitoring
|
||
|
||
The audit and monitoring channel that allows System 3 to verify information
|
||
coming from System 1 through channels other than those provided by System 2.
|
||
System 3* provides sporadic, direct access to operational reality.
|
||
|
||
**In economic terms:** Market inspections, quality checks, auditing of accounts,
|
||
surprise investigations into trade practices, verification of weights and measures.
|
||
|
||
**Key properties:** Sporadic direct investigation, reality checking, bypassing
|
||
normal reporting channels.
|
||
|
||
### System 4 (S4) — Intelligence / Adaptation
|
||
|
||
The bodies and processes that look outward to the environment to monitor
|
||
how the organisation needs to adapt to remain viable. System 4 captures
|
||
all relevant information about the outside-and-then environment. It is
|
||
responsible for strategic responses.
|
||
|
||
**In economic terms:** Foreign intelligence about trade opportunities,
|
||
market research, new technology adoption, colonial exploration and trade
|
||
route development, understanding of foreign economic systems.
|
||
|
||
**Key properties:** Environmental scanning, future orientation, strategic
|
||
planning, modelling, research and development.
|
||
|
||
### System 5 (S5) — Policy / Identity
|
||
|
||
The policy-making body that balances demands from Systems 3 and 4 and defines
|
||
the identity, values, and purpose of the organisation. System 5 provides
|
||
closure to the whole system and represents its supreme authority.
|
||
|
||
**In economic terms:** Sovereign authority, constitutional principles governing
|
||
economic policy, national economic identity, the philosophical foundations
|
||
of economic systems (mercantilism vs. free trade), the overarching purpose
|
||
of the commonwealth.
|
||
|
||
**Key properties:** Identity, ethos, supreme command, policy closure,
|
||
balancing internal and external perspectives.
|
||
|
||
## Key Concepts
|
||
|
||
### Recursion
|
||
|
||
Every viable system contains and is contained in a viable system. The same
|
||
five-system structure recurs at every level of organisation. A workshop is
|
||
a viable system within a factory, which is a viable system within an
|
||
industry, which is a viable system within a national economy.
|
||
|
||
### Variety
|
||
|
||
A measure of the number of possible states of a system. The Law of Requisite
|
||
Variety (Ashby's Law) states that only variety can absorb variety. A
|
||
controller must have at least as much variety as the system it controls.
|
||
|
||
### Requisite Variety
|
||
|
||
The principle that for effective regulation, the variety of the regulator
|
||
must match the variety of the system being regulated. This is achieved
|
||
through variety attenuation (reducing the variety coming up from operations)
|
||
and variety amplification (increasing the variety of management's responses).
|
||
|
||
### Attenuation and Amplification
|
||
|
||
Variety engineering mechanisms. Attenuation reduces variety (e.g., reporting
|
||
summaries, statistical aggregation, standardisation). Amplification increases
|
||
variety (e.g., delegation, empowerment, decentralisation).
|
||
|
||
### Algedonic Signals
|
||
|
||
Emergency signals that bypass the normal management hierarchy to alert
|
||
higher systems of critical situations requiring immediate attention. Named
|
||
from the Greek words for pain (algos) and pleasure (hedone).
|
||
|
||
**In economic terms:** Market panics, famine signals, sudden price collapses,
|
||
trade embargoes, economic crises that demand immediate sovereign intervention.
|
||
|
||
### Autonomy
|
||
|
||
The degree of freedom granted to operational units (System 1) to self-organise
|
||
within constraints set by System 3. Beer argued that maximum autonomy
|
||
consistent with systemic cohesion yields maximum viability.
|
||
|
||
### Viability
|
||
|
||
The capacity of a system to maintain a separate existence and survive in a
|
||
changing environment. A viable system continuously adapts while maintaining
|
||
its identity.
|
||
|
||
|
||
## Existing Entities
|
||
|
||
The following entities have already been extracted from previous chapters
|
||
of this work. Do NOT re-extract any of these. If one of these entities
|
||
appears in the current chapter, you may omit it entirely — the infospace
|
||
already contains it. Only extract entities that are genuinely new.
|
||
|
||
- accumulation-of-stock
|
||
- active-and-productive-stock
|
||
- adulteration-of-metals
|
||
- adulterine-guilds
|
||
- advanced-state-of-society
|
||
- advancing-state-of-manufacture
|
||
- agio-of-bank-money
|
||
- agricultural-capital
|
||
- agricultural-capital-structure
|
||
- agricultural-comparative-advantage
|
||
- agricultural-cultivation
|
||
- agricultural-cultivation-at-farmer-expense
|
||
- agricultural-cultivation-at-proprietor-expense
|
||
- agricultural-demand
|
||
- agricultural-development-constraints
|
||
- agricultural-development-sequence
|
||
- agricultural-economic-potential
|
||
- agricultural-efficiency
|
||
- agricultural-improvement
|
||
- agricultural-improvement-discouragement
|
||
- agricultural-improvement-foundation
|
||
- agricultural-labour
|
||
- agricultural-market-access-cost-structure
|
||
- agricultural-market-access-development-prerequisites
|
||
- agricultural-market-access-development-sequence
|
||
- agricultural-market-access-gradient
|
||
- agricultural-market-access-inequality
|
||
- agricultural-market-access-opportunity-cost
|
||
- agricultural-market-communication-channels
|
||
- agricultural-market-integration
|
||
- agricultural-market-size-threshold
|
||
- agricultural-opportunity-cost
|
||
- agricultural-price-ceilings
|
||
- agricultural-price-differential
|
||
- agricultural-price-discovery
|
||
- agricultural-price-discrimination
|
||
- agricultural-price-elasticity
|
||
- agricultural-price-equalization
|
||
- agricultural-price-floors
|
||
- agricultural-price-mechanism
|
||
- agricultural-price-regulation
|
||
- agricultural-price-stability
|
||
- agricultural-price-transmission
|
||
- agricultural-price-volatility
|
||
- agricultural-productivity
|
||
- agricultural-productivity-limits
|
||
- agricultural-security-gradient
|
||
- agricultural-spatial-inequality
|
||
- agricultural-specialization
|
||
- agricultural-stock
|
||
- agricultural-supply
|
||
- agricultural-surplus
|
||
- agricultural-surplus-determination
|
||
- agricultural-technology
|
||
- agricultural-technology-adoption
|
||
- agricultural-trade
|
||
- alien-merchant-duties
|
||
- ancient-system-of-political-economy
|
||
- annual-coinage-expense-justification
|
||
- annual-consumption-of-goods
|
||
- annual-consumption-of-metals
|
||
- annual-importation-of-gold-and-silver-purposes
|
||
- annual-industry-employed-in-production
|
||
- annual-plate-addition-estimation
|
||
- annual-produce-of-land-and-labour
|
||
- annual-surplus-of-gold-in-portugal
|
||
- apprenticeships
|
||
- artificer-neighbourhood-settlement
|
||
- artificer-planter-independence
|
||
- artificer-planter-transition
|
||
- artificer-servant-status
|
||
- artificers-and-retailers
|
||
- artificial-direction-of-industry
|
||
- artificial-grasses
|
||
- artificial-market-creation
|
||
- artisan-specialisation
|
||
- assaying
|
||
- assize-of-bread
|
||
- assize-of-bread-and-ale
|
||
- aulnagers
|
||
- average-price-of-corn
|
||
- balance-of-produce-and-consumption
|
||
- balance-of-trade
|
||
- balance-of-trade-doctrine
|
||
- bank-capital-adequacy
|
||
- bank-capital-structure
|
||
- bank-circulation-limits
|
||
- bank-competition-effects
|
||
- bank-credit-allocation
|
||
- bank-credit-cycles
|
||
- bank-credit-extension
|
||
- bank-credit-quality
|
||
- bank-economic-contribution
|
||
- bank-economic-contribution-metrics
|
||
- bank-economic-cycles
|
||
- bank-economic-development
|
||
- bank-economic-development-metrics
|
||
- bank-economic-efficiency
|
||
- bank-economic-efficiency-factors
|
||
- bank-economic-efficiency-metrics
|
||
- bank-economic-growth
|
||
- bank-economic-resilience
|
||
- bank-economic-resilience-factors
|
||
- bank-economic-resilience-metrics
|
||
- bank-economic-stability
|
||
- bank-failure-mechanisms
|
||
- bank-financial-development
|
||
- bank-financial-innovation
|
||
- bank-financial-innovation-adoption
|
||
- bank-financial-innovation-diffusion
|
||
- bank-financial-innovation-factors
|
||
- bank-financial-innovation-impact
|
||
- bank-financial-innovation-metrics
|
||
- bank-financial-intermediation
|
||
- bank-financial-intermediation-efficiency
|
||
- bank-financial-stability
|
||
- bank-financial-stability-factors
|
||
- bank-financial-stability-metrics
|
||
- bank-financial-system-integration
|
||
- bank-financial-system-stability
|
||
- bank-information-asymmetry
|
||
- bank-interest-rate-determination
|
||
- bank-liquidity-management
|
||
- bank-market-discipline
|
||
- bank-market-structure
|
||
- bank-monetary-policy
|
||
- bank-monetary-stability
|
||
- bank-money
|
||
- bank-notes
|
||
- bank-of-england-coinage-burden
|
||
- bank-operational-efficiency
|
||
- bank-operational-risk
|
||
- bank-public-utility
|
||
- bank-regulatory-compliance
|
||
- bank-regulatory-effectiveness
|
||
- bank-regulatory-evolution
|
||
- bank-regulatory-framework
|
||
- bank-regulatory-framework-evolution
|
||
- bank-reserves
|
||
- bank-risk-management
|
||
- bank-systemic-risk
|
||
- bank-systemic-risk-management
|
||
- bank-systemic-stability
|
||
- bank-transaction-costs
|
||
- barbarous-nations-barrier
|
||
- barter-and-exchange
|
||
- benevolence
|
||
- bills-of-exchange
|
||
- bleacher
|
||
- boat-fishery
|
||
- bounty
|
||
- bullion
|
||
- bullion-market-price-mechanism
|
||
- bullion-transportation-cost-advantage
|
||
- buss-fishery
|
||
- butcher-trade
|
||
- bye-laws
|
||
- canal-communication
|
||
- capital
|
||
- capital-accumulation
|
||
- capital-accumulation-through-frugality
|
||
- capital-decay-through-excessive-consumption
|
||
- capital-employed
|
||
- capital-employment-advantages
|
||
- capital-employment-effects
|
||
- capital-employment-security-gradient
|
||
- capital-of-the-farmer
|
||
- capital-replacement
|
||
- capital-security-preference
|
||
- capital-security-visibility
|
||
- carriage-value-savings
|
||
- carrying-trade
|
||
- cash-accounts
|
||
- certificates
|
||
- cheap-years
|
||
- circulating-capital
|
||
- circulating-capital-components
|
||
- circulating-money
|
||
- circulation-of-money
|
||
- civil-government-expense-in-colonies
|
||
- coal-heaver
|
||
- coal-price
|
||
- coarser-and-finer-materials
|
||
- coin-degradation-measurement
|
||
- coined-money
|
||
- collier
|
||
- colonial-administrative-efficiency
|
||
- colonial-dependency-structure
|
||
- colonial-economic-adaptation
|
||
- colonial-economic-autonomy
|
||
- colonial-economic-autonomy-benefits
|
||
- colonial-economic-comparative-advantage
|
||
- colonial-economic-development-constraints
|
||
- colonial-economic-development-sequence
|
||
- colonial-economic-diversification
|
||
- colonial-economic-efficiency-analysis
|
||
- colonial-economic-freedom
|
||
- colonial-economic-growth-patterns
|
||
- colonial-economic-integration
|
||
- colonial-economic-interdependence
|
||
- colonial-economic-justice
|
||
- colonial-economic-opportunity-costs
|
||
- colonial-economic-policy-alternatives
|
||
- colonial-economic-policy-effectiveness
|
||
- colonial-economic-potential
|
||
- colonial-economic-specialization
|
||
- colonial-economic-stability
|
||
- colonial-economic-system-adaptation-mechanisms
|
||
- colonial-economic-system-balance
|
||
- colonial-economic-system-comparison
|
||
- colonial-economic-system-coordination
|
||
- colonial-economic-system-design
|
||
- colonial-economic-system-dynamics
|
||
- colonial-economic-system-equilibrium
|
||
- colonial-economic-system-evaluation
|
||
- colonial-economic-system-evolution
|
||
- colonial-economic-system-feedback-loops
|
||
- colonial-economic-system-governance
|
||
- colonial-economic-system-implementation
|
||
- colonial-economic-system-innovation
|
||
- colonial-economic-system-learning
|
||
- colonial-economic-system-objectives
|
||
- colonial-economic-system-outcomes
|
||
- colonial-economic-system-performance
|
||
- colonial-economic-system-principles
|
||
- colonial-economic-system-resilience
|
||
- colonial-economic-system-stability-mechanisms
|
||
- colonial-economic-system-sustainability
|
||
- colonial-economic-system-transformation
|
||
- colonial-labor-market-dynamics
|
||
- colonial-land-abundance-effects
|
||
- colonial-market-access-costs
|
||
- colonial-market-expansion
|
||
- colonial-military-burden
|
||
- colonial-population-growth-factors
|
||
- colonial-prosperity-mechanisms
|
||
- colonial-revenue-potential
|
||
- colonial-trade-monopoly
|
||
- colonial-trade-pattern-distortion
|
||
- colonial-wine-duty-drawback
|
||
- colony-assemblies
|
||
- colony-prosperity
|
||
- colony-trade-monopoly
|
||
- combination-of-masters
|
||
- combination-of-workmen
|
||
- command-over-labour
|
||
- commerce-between-town-and-country
|
||
- commerce-of-towns
|
||
- commercial-country-ruin-predictions
|
||
- commercial-development-sequence-inversion
|
||
- commercial-discord-source
|
||
- commercial-family-duration-pattern
|
||
- commercial-hospitality-contrast
|
||
- commercial-independence-effect
|
||
- commercial-interactions
|
||
- commercial-jealousy-mechanism
|
||
- commercial-maxims-inversion
|
||
- commercial-or-mercantile-system
|
||
- commercial-order-and-government-introduction
|
||
- commercial-policy-of-england
|
||
- commercial-society
|
||
- commercial-society-emergence
|
||
- commercial-society-formation
|
||
- commercial-system-enrichment-mechanism
|
||
- commercial-system-principles
|
||
- commercial-system-transformation
|
||
- commercial-transactions
|
||
- common-annual-profits-of-manufacturing-stock
|
||
- common-labour-wages
|
||
- common-returns-of-stock
|
||
- commonalty
|
||
- comparative-advantage-principle
|
||
- competition-among-buyers
|
||
- competition-among-dealers
|
||
- competition-among-sellers
|
||
- complete-manufacture
|
||
- component-parts-of-price
|
||
- computed-exchange-rate
|
||
- consumption-of-foreign-goods
|
||
- contract
|
||
- conversion-price
|
||
- copper-money
|
||
- corn-exportation-prohibition
|
||
- corn-land
|
||
- corn-rent
|
||
- corporation-laws
|
||
- corporation-privileges-and-market-prices
|
||
- country-gentlemen
|
||
- country-gentlemen-versus-merchants
|
||
- country-life-charms
|
||
- cultivation-improvement-priority
|
||
- dead-stock
|
||
- dear-years
|
||
- debasement-of-currency
|
||
- declining-manufacture
|
||
- degradation-of-coin
|
||
- degradation-of-silver
|
||
- demand-for-labour
|
||
- demesne
|
||
- diamond-buckles-metaphor
|
||
- direct-foreign-trade-of-consumption
|
||
- disadvantageous-balance-trade-restraints
|
||
- discount-of-bills
|
||
- distant-country-subsistence
|
||
- distant-market-manufacturing
|
||
- distant-sale-manufacturing
|
||
- division-of-labour
|
||
- division-of-labour-advantage
|
||
- domestic-industry-protection
|
||
- domestic-market-monopoly
|
||
- domestic-market-size-effects
|
||
- double-coincidence-of-wants
|
||
- drawback
|
||
- drawbacks
|
||
- drawing-and-redrawing
|
||
- dwelling-house-distinction
|
||
- early-and-rude-state-of-society
|
||
- early-navigation-advantages
|
||
- economic-accessibility-determinants
|
||
- economic-accessibility-gradient
|
||
- economic-autonomy
|
||
- economic-autonomy-gradient
|
||
- economic-backwardness
|
||
- economic-connectivity-importance
|
||
- economic-development-constraints
|
||
- economic-development-geography
|
||
- economic-development-geography-theory
|
||
- economic-development-sequence
|
||
- economic-development-sequencing
|
||
- economic-development-spatial-patterns
|
||
- economic-geography
|
||
- economic-geography-determinism
|
||
- economic-geography-impact
|
||
- economic-identity
|
||
- economic-isolation-effects
|
||
- economic-opportunity-cost
|
||
- economic-opportunity-geography
|
||
- economic-prosperity-symptoms
|
||
- economic-spatial-inequality
|
||
- economic-spatial-organisation
|
||
- economic-spatial-organization
|
||
- economic-stagnation-symptoms
|
||
- economic-system-actor
|
||
- economic-system-adaptability
|
||
- economic-system-adaptation
|
||
- economic-system-adoption-factor
|
||
- economic-system-analysis
|
||
- economic-system-application
|
||
- economic-system-benchmark
|
||
- economic-system-best-practice
|
||
- economic-system-best-practices
|
||
- economic-system-change-agent
|
||
- economic-system-comparison
|
||
- economic-system-comprehension
|
||
- economic-system-consequence
|
||
- economic-system-context
|
||
- economic-system-coordination
|
||
- economic-system-development
|
||
- economic-system-diffusion-mechanism
|
||
- economic-system-diffusion-mechanisms
|
||
- economic-system-effectiveness
|
||
- economic-system-effectiveness-evaluation
|
||
- economic-system-efficiency
|
||
- economic-system-evaluation
|
||
- economic-system-evaluation-criteria
|
||
- economic-system-evolution
|
||
- economic-system-experience-accumulation
|
||
- economic-system-explanation
|
||
- economic-system-failure-indicator
|
||
- economic-system-framework
|
||
- economic-system-function
|
||
- economic-system-governance
|
||
- economic-system-implementation
|
||
- economic-system-implementation-barrier
|
||
- economic-system-improvement
|
||
- economic-system-influence
|
||
- economic-system-innovation
|
||
- economic-system-innovation-driver
|
||
- economic-system-institution
|
||
- economic-system-integration
|
||
- economic-system-interaction
|
||
- economic-system-knowledge
|
||
- economic-system-knowledge-transfer
|
||
- economic-system-learning-process
|
||
- economic-system-legitimacy
|
||
- economic-system-management
|
||
- economic-system-mechanism
|
||
- economic-system-mechanisms
|
||
- economic-system-objectives
|
||
- economic-system-operation
|
||
- economic-system-outcome-measure
|
||
- economic-system-outcomes
|
||
- economic-system-performance-indicator
|
||
- economic-system-policy
|
||
- economic-system-practice
|
||
- economic-system-principles
|
||
- economic-system-purpose
|
||
- economic-system-relationship
|
||
- economic-system-resistance-factor
|
||
- economic-system-resistance-factors
|
||
- economic-system-selection
|
||
- economic-system-standard
|
||
- economic-system-structure
|
||
- economic-system-success-measure
|
||
- economic-system-sustainability
|
||
- economic-system-theory
|
||
- economic-system-transformation
|
||
- economic-system-transition-challenge
|
||
- economic-system-transition-challenges
|
||
- economic-systems-distinction
|
||
- effect-of-prohibition-on-gold-and-silver-export
|
||
- effectual-demand
|
||
- ejectment-action
|
||
- encroachment-upon-capital
|
||
- engrossers-and-forestallers
|
||
- engrossing
|
||
- entail
|
||
- enumerated-commodities
|
||
- environmental-scanning
|
||
- equal-profit-employment-choice
|
||
- exchange
|
||
- exchange-rate-mechanism
|
||
- exchangeable-value
|
||
- exchequer
|
||
- excise-duty-drawback
|
||
- exclusive-company
|
||
- exclusive-corporation
|
||
- export-bounty
|
||
- export-of-gold-and-silver-prohibition-effects
|
||
- exportation-bounty
|
||
- exportation-of-gold-and-silver-as-effect-of-declension
|
||
- exportation-trade
|
||
- extraordinary-expense
|
||
- extraordinary-profits
|
||
- extraordinary-profits-analysis
|
||
- extraordinary-restraints-on-importation
|
||
- fairs-and-markets
|
||
- false-coiners-and-seignorage
|
||
- farm-rent
|
||
- farmer
|
||
- farmers-capital
|
||
- farmers-profit
|
||
- favour
|
||
- feudal-anarchy
|
||
- feudal-government-effects
|
||
- fixed-capital
|
||
- flax-grower
|
||
- fluctuations-in-value-of-gold-and-silver
|
||
- forced-corn-trade
|
||
- foreign-capital-exportation
|
||
- foreign-commerce-manufactures-birth
|
||
- foreign-commodities
|
||
- foreign-corn-importation-effects
|
||
- foreign-manufacture-prohibitions
|
||
- foreign-market
|
||
- foreign-sale-encouragement
|
||
- foreign-trade
|
||
- foreign-trade-enrichment-mechanism
|
||
- foreign-trade-of-consumption
|
||
- forestalling
|
||
- four-methods-of-employing-capital
|
||
- fraud-in-drawback-system
|
||
- free-burgh
|
||
- free-ports
|
||
- free-trade
|
||
- freeholder-yeomanry
|
||
- french-goods-export-restrictions
|
||
- frozen-ocean-barrier
|
||
- frugal-and-industrious-borrowers
|
||
- frugality-versus-prodigality
|
||
- fruit-garden
|
||
- fruit-wall
|
||
- funds-for-maintaining-labour
|
||
- funds-for-maintaining-productive-labour
|
||
- funds-for-maintaining-unproductive-hands
|
||
- gold-and-silver-as-measure-of-value
|
||
- gold-money
|
||
- gold-price-variation
|
||
- gradual-restoration-of-trade-freedom
|
||
- graziers-versus-manufacturers-interests
|
||
- gross-revenue
|
||
- hanseatic-league
|
||
- higgling-and-bargaining-of-the-market
|
||
- home-made-commodities
|
||
- home-market
|
||
- home-market-monopoly
|
||
- home-trade
|
||
- hop-garden
|
||
- human-folly-injustice-exposure
|
||
- human-nature
|
||
- idle-consumers
|
||
- immediate-consumption
|
||
- import-restraint
|
||
- importation-trade
|
||
- improved-farm-advantages
|
||
- improved-land
|
||
- improvement-of-the-country
|
||
- inclosure
|
||
- increase-of-money-as-effect-of-prosperity
|
||
- inland-corn-dealer
|
||
- inland-duty-drawback
|
||
- inland-market-limitation
|
||
- inland-navigation-extent
|
||
- inland-parts-of-the-country
|
||
- inland-trade
|
||
- inn-or-tavern-keeper
|
||
- instruments-of-husbandry
|
||
- interest
|
||
- interest-of-money
|
||
- interest-or-use-of-money
|
||
- invisible-hand-mechanism
|
||
- joint-stock-company
|
||
- journeymen
|
||
- judgment-in-labour-application
|
||
- kelp
|
||
- kitchen-garden
|
||
- labour-of-inspection-and-direction
|
||
- labouring-cattle
|
||
- labouring-poor
|
||
- land-carriage
|
||
- land-mines-and-fisheries
|
||
- land-monopolization-effects
|
||
- landlord
|
||
- landlords-share
|
||
- law-of-primogeniture
|
||
- legal-rate-of-interest
|
||
- legal-tender
|
||
- licence-to-gather-natural-produce
|
||
- lowest-rate-of-wages
|
||
- machinery-invention
|
||
- madeira-wine-trade-exception
|
||
- manufactured-produce
|
||
- manufacturer
|
||
- manufacturers-monopoly-power
|
||
- manufacturing-capital
|
||
- manufacturing-process-subdivision
|
||
- manufacturing-subdivision
|
||
- maritime-commerce-development
|
||
- maritime-employment
|
||
- market-access-cost-structure
|
||
- market-access-development-sequence
|
||
- market-access-economic-potential
|
||
- market-access-gradient
|
||
- market-access-inequality
|
||
- market-access-opportunity-cost
|
||
- market-based-economic-geography
|
||
- market-based-economic-identity
|
||
- market-based-economic-structure
|
||
- market-based-productivity-limits
|
||
- market-based-specialisation
|
||
- market-communication-channels
|
||
- market-demand-regulation
|
||
- market-development-prerequisites
|
||
- market-driven-division
|
||
- market-extent
|
||
- market-extent-advantageousness
|
||
- market-extent-economic-impact
|
||
- market-extent-measurement
|
||
- market-for-surplus-produce
|
||
- market-integration-barriers
|
||
- market-integration-potential
|
||
- market-integration-timeline
|
||
- market-obstruction
|
||
- market-price-adjustment
|
||
- market-price-adjustment-mechanism
|
||
- market-price-mechanism
|
||
- market-price-mechanism-for-rude-produce
|
||
- market-price-mechanism-regulation
|
||
- market-price-of-bullion
|
||
- market-price-of-commodities
|
||
- market-price-of-things
|
||
- market-price-regulation-mechanism
|
||
- market-proximity-advantage
|
||
- market-rate-of-interest
|
||
- market-regulation-of-prices
|
||
- market-separation
|
||
- market-size-economies
|
||
- market-size-specialisation-threshold
|
||
- market-size-specialization
|
||
- market-size-threshold
|
||
- market-size-threshold-effects
|
||
- market-town-economy
|
||
- market-town-formation
|
||
- masquerade-dress-trade
|
||
- master-artificer
|
||
- master-manufacturer
|
||
- materials-and-subsistence
|
||
- measure-of-exchangeable-value
|
||
- mediterranean-civilisation-pattern
|
||
- melting-pot-effects
|
||
- menial-servants
|
||
- mercantile-jealousy
|
||
- mercantile-system
|
||
- mercantile-system-principles
|
||
- merchant
|
||
- merchant-capital
|
||
- merchant-capital-employment-choices
|
||
- merchant-carrier
|
||
- merchant-country-gentleman-transition
|
||
- merchantable-herrings
|
||
- metal-currency
|
||
- metayer
|
||
- military-assistance
|
||
- military-defense-expense
|
||
- military-discipline
|
||
- military-employment
|
||
- mine-fertility
|
||
- mine-situation
|
||
- mint
|
||
- mint-price
|
||
- mint-price-versus-market-price-relationship
|
||
- modern-states-inversion
|
||
- modern-system-of-political-economy
|
||
- modes-of-expense-affecting-public-opulence
|
||
- money
|
||
- money-as-instrument-of-commerce
|
||
- money-price-of-corn
|
||
- money-price-of-labour
|
||
- money-rent
|
||
- moneys-worth
|
||
- monied-interest
|
||
- monopoly-effects-on-market-price
|
||
- monopoly-effects-on-prices
|
||
- monopoly-in-trade
|
||
- monopoly-of-sugar-trade
|
||
- monopoly-of-tobacco-trade
|
||
- monopoly-price-of-land
|
||
- mutual-gain-reciprocity
|
||
- mutual-good-offices
|
||
- mutual-servitude
|
||
- national-animosity-in-commerce
|
||
- national-animosity-in-trade-policy
|
||
- national-capital-composition
|
||
- national-economic-identity
|
||
- national-enrichment-through-neighbours-wealth
|
||
- national-prejudice-and-animosity-in-trade
|
||
- national-prejudice-in-trade
|
||
- natural-advantages-in-trade
|
||
- natural-balance-of-employments
|
||
- natural-complement-of-riches
|
||
- natural-course-of-capital-employment
|
||
- natural-course-of-things
|
||
- natural-development-sequence
|
||
- natural-division-of-labour
|
||
- natural-employment-of-capital
|
||
- natural-inclinations-thwarting
|
||
- natural-liberty-in-banking
|
||
- natural-liberty-in-colonial-trade
|
||
- natural-liberty-in-trade
|
||
- natural-market-advantages
|
||
- natural-order-inversion
|
||
- natural-order-of-economic-development
|
||
- natural-preference-cultivation
|
||
- natural-price-as-central-price
|
||
- natural-price-of-commodities
|
||
- natural-produce-of-land
|
||
- natural-progress-of-improvement
|
||
- natural-rates-of-wages-profit-and-rent
|
||
- natural-rent-of-land
|
||
- natural-state-of-employments
|
||
- navigable-rivers
|
||
- neat-revenue
|
||
- necessity
|
||
- nominal-measure-of-value
|
||
- nominal-price
|
||
- nominal-price-of-commodities
|
||
- non-enumerated-commodities
|
||
- non-standard-metal
|
||
- occasional-and-temporary-market-fluctuations
|
||
- old-subsidy-drawback-rules
|
||
- ordinary-market-price-of-land
|
||
- ordinary-profits-of-stock
|
||
- ordinary-rates-of-wages-profit-and-rent
|
||
- ordinary-state-of-employments
|
||
- original-destination-of-man
|
||
- original-government-manners
|
||
- overstocked-market-conditions
|
||
- packet-boat-gold-import-estimate
|
||
- paper-money
|
||
- pasture-land
|
||
- payment-in-kind
|
||
- penelopes-web-metaphor
|
||
- perfect-liberty-in-trade
|
||
- permanent-market-price-enhancements
|
||
- permanent-versus-temporary-price-effects
|
||
- perpetual-fund-for-maintenance-of-labour
|
||
- piece-work-wages
|
||
- pin-maker-trade
|
||
- planter-independence
|
||
- plate-household-silver
|
||
- poacher
|
||
- policy-closure
|
||
- policy-closure-concept
|
||
- political-arithmetic
|
||
- political-economy
|
||
- political-economy-objectives
|
||
- poll-tax
|
||
- poll-tax-compensation
|
||
- potato-cultivation
|
||
- precious-metals-consumption
|
||
- present-state-of-the-nation-analysis
|
||
- price-in-labour
|
||
- price-in-money
|
||
- price-of-commodities
|
||
- prime-cost-of-commodities
|
||
- principal-clerk
|
||
- principal-employments
|
||
- private-interest-monopoly-spirit
|
||
- private-misconduct-versus-public-prodigality
|
||
- prodigals
|
||
- prodigals-and-projectors
|
||
- productive-abilities
|
||
- productive-and-unproductive-labour
|
||
- productive-labourers
|
||
- productive-powers-of-labour
|
||
- profits-of-stock
|
||
- progress-of-opulence
|
||
- progressive-state-of-society
|
||
- progressive-wealth-consequentiality
|
||
- promissory-notes
|
||
- proportion-between-metals
|
||
- proportion-between-productive-and-unproductive-hands
|
||
- prudent-family-maxim
|
||
- public-education-of-professionals
|
||
- public-executioner
|
||
- public-fiars
|
||
- public-generosity-in-coinage
|
||
- public-good-versus-private-interest
|
||
- public-law-on-coinage
|
||
- public-lottery
|
||
- public-mourning-effects
|
||
- public-registers-of-manufactures
|
||
- public-revenue
|
||
- public-services-funding
|
||
- public-tranquillity
|
||
- purveyance
|
||
- quantity-of-labour
|
||
- rate-of-interest
|
||
- rate-of-profit
|
||
- re-exportation-drawback
|
||
- real-exchange-rate
|
||
- real-measure-of-value
|
||
- real-price
|
||
- real-price-of-commodities
|
||
- real-value-of-corn-rent
|
||
- real-value-of-silver
|
||
- regulated-proportion
|
||
- religious-occupational-restrictions
|
||
- rent-of-land
|
||
- requisite-variety
|
||
- requisite-variety-in-banking
|
||
- restraints-upon-importation
|
||
- retail-trade
|
||
- retailers
|
||
- retainers-and-dependents-system
|
||
- retaliation-in-trade-policy
|
||
- revenue
|
||
- revenue-constituting-profit-and-rent
|
||
- revenue-destined-for-capital-replacement
|
||
- revenue-for-public-services
|
||
- revenue-or-subsistence-for-the-people
|
||
- revenue-versus-capital-effects
|
||
- rice-countries
|
||
- river-navigation-infrastructure
|
||
- round-about-foreign-trade-of-consumption
|
||
- rude-produce
|
||
- rural-urban-reciprocity
|
||
- scarcity-of-hands
|
||
- sea-coast-development
|
||
- sea-sticks
|
||
- security-preference-capital
|
||
- seed-as-fixed-capital
|
||
- seed-time-and-harvest-metaphor
|
||
- seignorage
|
||
- self-love
|
||
- servile-condition
|
||
- settlement-laws
|
||
- silver-money
|
||
- silver-price-variation
|
||
- skill-and-dexterity
|
||
- smuggling
|
||
- smuggling-as-principal-import-method
|
||
- smuggling-of-precious-metals
|
||
- smuggling-trade
|
||
- sober-people
|
||
- societys-general-stock
|
||
- sovereign-economic-policy-authority
|
||
- sovereign-parsimony
|
||
- sovereign-parsimony-principle
|
||
- spare-revenue
|
||
- specie
|
||
- specie-export-prohibition-effects
|
||
- species-of-industry-with-consistent-output
|
||
- species-of-industry-with-variable-output
|
||
- speculative-trade
|
||
- stamp-masters
|
||
- standard-metal
|
||
- standard-weight-of-coin
|
||
- state-or-commonwealth-revenue
|
||
- stationary-country
|
||
- statute-of-labourers
|
||
- statutes-of-apprenticeship-effects
|
||
- sterling-mark
|
||
- stock
|
||
- stock-lent-at-interest
|
||
- stock-of-the-country
|
||
- stock-of-the-farmer
|
||
- strategic-planning
|
||
- subsistence
|
||
- subsistence-agriculture
|
||
- subsistence-industry-priority
|
||
- subsistence-necessity-priority
|
||
- subsistence-of-the-dealer
|
||
- subsistence-prioritization
|
||
- sugar-colonies
|
||
- superfluity
|
||
- superior-hardship-and-superior-skill
|
||
- surplus-produce
|
||
- system-of-agriculture
|
||
- system-of-commerce
|
||
- systemic-stability
|
||
- systemic-stability-analysis
|
||
- taille
|
||
- tale
|
||
- tale-versus-weight-measurement
|
||
- temporary-price-of-corn
|
||
- temporary-statutes
|
||
- temporary-versus-permanent-price-effects
|
||
- territorial-cultivation-completeness
|
||
- territorial-cultivation-limit
|
||
- territorial-improvement-support
|
||
- territorial-support-limitation
|
||
- three-original-sources-of-revenue
|
||
- three-way-employment-of-stock
|
||
- thriving-country
|
||
- tobacco-colonies
|
||
- toil-and-trouble-of-acquiring
|
||
- tonnage-bounty
|
||
- town-country-dependency
|
||
- town-market-function
|
||
- town-reproduction-impossibility
|
||
- trade-as-union-and-friendship
|
||
- trade-balance-mechanism
|
||
- trade-capital
|
||
- trade-encouragement
|
||
- trade-route-dependency
|
||
- transportation-cost-differential
|
||
- transportation-infrastructure-importance
|
||
- transportation-mode-economic-effects
|
||
- treasure-accumulation
|
||
- treasure-trove
|
||
- treaties-of-commerce
|
||
- treaty
|
||
- truck
|
||
- two-branches-of-circulation
|
||
- uncultivated-land-availability
|
||
- underling-tradesmen-maxims
|
||
- unimproved-land
|
||
- universal-instruments-of-commerce
|
||
- university-of-trades
|
||
- unproductive-labourers
|
||
- unstamped-bars
|
||
- urban-autonomy
|
||
- urban-rural-reciprocity
|
||
- usury
|
||
- value-in-exchange
|
||
- value-in-use
|
||
- value-of-gold
|
||
- value-of-silver
|
||
- variety-of-talents
|
||
- venison
|
||
- victuals
|
||
- villeinage
|
||
- vineyard
|
||
- wages-of-a-journeyman
|
||
- wages-of-labour
|
||
- waggon-way-through-the-air-metaphor
|
||
- warehouse-export-system
|
||
- warehouse-rent-for-bullion-deposits
|
||
- warehouse-system
|
||
- water-carriage
|
||
- water-pond-metaphor
|
||
- weighing
|
||
- whole-produce-of-labour
|
||
- wholesale-merchants
|
||
- wholesale-trade
|
||
- wood-price
|
||
- wool-grower
|
||
|
||
## Instructions
|
||
|
||
1. Read the source chapter carefully.
|
||
2. Review the list of existing entities above and do not duplicate them.
|
||
3. Identify all distinct economic concepts, actors, mechanisms, and institutions
|
||
that are NOT already in the existing entities list.
|
||
4. For each new entity, produce a separate markdown document following the
|
||
Economic Entity Schema v1.0.
|
||
5. Each entity document must include:
|
||
- An H1 heading with the entity name
|
||
- A Definition section (20-150 words)
|
||
- A Source Chapter section citing the specific chapter
|
||
- A Context section describing where in the argument the entity appears
|
||
- An Economic Domain section classifying the entity
|
||
6. Optionally include Smith's Original Wording (direct quote) and
|
||
Modern Interpretation sections.
|
||
7. Use neutral, analytical language throughout.
|
||
8. Ensure each entity is distinct and self-contained.
|
||
|
||
## Output Format
|
||
|
||
Output each entity as a separate markdown document, delimited by
|
||
`--- ENTITY: <entity-name> ---` markers.
|
||
|
||
Use **H2 headings** (`##`) for each section inside the entity document.
|
||
Do NOT use inline `Section:` format or H3 headings.
|
||
|
||
Example of a correctly formatted entity:
|
||
|
||
```
|
||
--- ENTITY: division of labour ---
|
||
|
||
# Division of Labour
|
||
|
||
## Definition
|
||
|
||
The separation of a work process into distinct tasks performed by specialised
|
||
workers, increasing productivity through greater dexterity, saved time, and
|
||
the invention of labour-saving machinery.
|
||
|
||
## Source Chapter
|
||
|
||
Book I, Chapter 1
|
||
|
||
## Context
|
||
|
||
The opening chapter's central argument, illustrated by Smith's pin factory
|
||
example showing how dividing 18 operations dramatically increases output.
|
||
|
||
## Economic Domain
|
||
|
||
Production
|
||
|
||
---
|
||
```
|