504

THE NATURE AND CAUSES OF

that of oats so soon as they rise to fourteen shillings. Thoseseveral prices seem all of them a good deal too low, and thereseems to be an impropriety, besides, in prohibiting exporta-tion altogether at those precise prices at which that bounty,which was given in order to force it, is withdrawn. Thebounty ought certainly either to have been withdrawn at amuch lower price, or exportation ought to have been allowedat a much higher.

So far, therefore, this law seems to be inferior to the an-cient system. With all its imperfections, however, we mayperhaps say of it what was said of the laws of Solon, thatthough not the best in itself, it is the best which the inte-rests, prejudices, and temper of the time would admit of.It may perhaps in due time prepare the way for a better.

ciiap. vi.

Of Treaties of Commerce.

When a nation binds itself by treaty either to permit theentry of certain goods from one foreign country which it pro-hibits from all others, or to exempt the goods of one countryfrom duties to which it subjects those of all others, the coun-try, or at least the merchants and manufacturers of the coun-try, whose commerce is so favoured, must necessarily derivegreat advantages from the treaty. Those merchants and ma-nufacturers enjoy a sort of monopoly in the country whichis so indulgent to them. That country becomes a marketboth more extensive and more advantageous for their goods:more extensive, because the goods of other nations beingeither excluded or subjected to heavier duties, it takes off agreater quantity of theirs: more advantageous, because themerchants ot the favoured country enjoying a sort of mono-poly there, will often sell their goods for a better price thanif exposed to the free competition of all other nations.

Such treaties, however, though they may be advantageousto the merchants and manufacturers of the favoured, are ne-cessarily disadvantageous to those ot the favouring country.A monopoly is thus granted against them to a foreign na-tion ; and they must frequently buy the foreign goods theyhave occasion for, dearer than if the free competition of othernations was admitted. That part of its own produce withwhich such a nation purchases foreign goods, must conse-quently be sold cheaper, because when two things are ex-