THE REMOVAL OF TRADE RESTRICTIONS

=Source.=--_The Political Life of George Canning_, by A. G.

Stapleton. London, 1831. Vol. III. pp. 16-22.

Mr. Huskisson felt therefore, when he came to the Board of Trade,

that although much had been done, yet more remained to do, and he

proceeded fearlessly, yet at the same time most cautiously, in

relaxing those restrictions on our commerce, which if preserved

were calculated to render almost nugatory the concessions already

made.

Accordingly during the sessions of 1823, 1824, and 1825, different

Acts were introduced by Mr. Huskisson for doing away with the

discriminating duties; but in order that foreign nations might not

impose new, or increase old discriminating duties, at the very

moment when we were abandoning ours, a power was reserved to the

King in Council to enforce the payment of additional duties upon

the ships of all foreign countries, in the event of the treatment

which British ships should meet with in their ports, not being

reciprocal to that, which their ships were to meet with, in the

ports of the United Kingdom.

In 1826 a new rule of navigation, exclusively applicable to the

Mediterranean, was established. Goods, the productions of Asia and

Africa, which should find their way to ports in Europe within that

sea by internal routes, and not by the Atlantick Ocean, were made

importable from those ports in British ships: thus erecting the

Mediterranean and its surrounding shores, as it were, into a fifth

quarter of the globe.

Mr. Huskisson also revised and altered the list of "enumerated

articles." When that list was first constructed it was intended

to consist of commodities of extensive importation; in process of

time some of the articles contained in the list had nearly ceased

to be imported, while their places were supplied by other articles

which were omitted. The list was therefore reconstructed upon the

principle of its original intention.

In 1825 the general consolidation of the Laws of the Customs

was effected by Mr. Hume,[3] under the favouring auspices of

the Board of Trade and Treasury. The difficulty and vastness of

this undertaking was only surpassed by its importance. From the

reign of the first Edward up to the present times, these laws had

accumulated to the enormous number of fifteen hundred--frequently

contradictory, and made without reference to each other, they were

only understood by the initiated few, and required the devotion

of a whole life to their study, at once to comprehend, and to

obey them. They were unintelligible to the merchants, while they

perplexed and harassed all their proceedings. This chaos of

Legislation was compressed by Mr. Hume into Eleven Acts (a sort

of Code Napoleon), with an order, a clearness, and a precision

whereby even the least talented of our mercantile men are now

enabled to consult the laws of the Customs with facility, and to

take them with safety for their guide. These effects, upon which

for their advantages to commerce Mr. Huskisson several times

expatiated with exultation, would alone make this consolidation a

most important era in our fiscal policy; but advantage was likewise

taken of the opportunity to introduce into the Laws themselves

some memorable changes, in conformity with the spirit of those

principles of commercial intercourse, on which the Government had

determined to act. Not only were duties of importance considerably

reduced, but those on numerous minor articles were lowered. During

the war the rates of the Tariff had been so increased, for the

single purpose of revenue, that they had become for the most part

inapplicable to a state of peace, and required general revision.

This revision was regulated by the following principles: First,

those duties were reduced, the heaviness of which tended to lessen,

rather than to increase their total product. Secondly, the duties

on raw materials, and on various articles useful in manufactures,

were lowered to little more than nominal sums. Thirdly, protecting

duties of extravagant amount were reduced to that point, at which

the consumer was fairly entitled to relief, either by the increased

industry of the home manufacture, or by access to other sources of

supply. And, lastly, the comforts and the tastes of the publick,

and the advantage of their retail suppliers, were consulted by

the removal of duties which prevented the introduction, or most

unnecessarily abridged, the use of many articles without benefit to

any party whatever.

By the system founded on these principles, there has not only

been distributed amongst a numerous population a great increase

of employment, but its diffusion has been greater in proportion,

than its increase. It is also very remarkable, that those trades

which have been prominent in complaining of foreign competition

have neither suffered more in diminution of profits, nor increased

less in extent of business, than those which have been able to hold

foreign competition at defiance.

Besides this consolidation of the Customs' Laws which took place

in 1825, an Act was passed in the session of that year, whereby

many commercial advantages were conferred on the Colonies, beyond

those contained in Mr. Robinson's two acts of 1822; Mr. Huskisson

laying down as the fundamental principle on which his alterations

were founded--a principle deduced from past experience with respect

both to _Ireland and to our Colonies_--that "so far as the Colonies

themselves were concerned, their prosperity was cramped and impeded

by a system of exclusion and monopoly; and that whatever tended

to increase the prosperity of the Colonies could not fail, in the

long run, to advance, in an equal degree, the general interests

of the parent state." By these Acts, not only articles of first

necessity, but goods of all descriptions, with very few exceptions,

were allowed to be imported from all countries, either in British

ships, or in ships of the country of their production; and the

goods of the Colonies were allowed to be exported in any ships to

any foreign country whatever. The only part of the Colonial system

which was persevered in, was that which excludes foreign ships

from carrying goods from one British place to another; "so that by

this arrangement was preserved the foundation of our Navigation

Laws--all intercourse between the mother-country and the Colonies,

whether direct or circuitous, and all intercourse of the Colonies

with each other, being considered as a coasting trade to be

reserved entirely and absolutely for ourselves."

The admission of foreign ships, however, was not unconditional:

it was made to depend upon reciprocal or equivalent liberality

towards our trade and navigation on the part of the countries

profiting by the advantages of it; but a power was given to the

King in Council to relax the rigour of the Law, if occasion should,

in any particular cases, seem to require it. By the same act, the

privileges of warehousing were extended to the chief trading ports

of the Colonies; a measure, which was well adapted to promote the

creation of _entrepôts_ in those places, for the general barter

trade of that quarter of the globe.

Independently of all these measures of internal legislation,

Treaties of Commerce, founded on the principles of reciprocity,

were negotiated with Prussia, Denmark, Sweden, the Hanse Towns,

three of the new States of Spanish America, and lastly with France.

In the case of Prussia, the power with whom the first of these

Treaties was made, it may be said that, it was fairly forced upon

this country. It certainly was not the wish of our Government

unnecessarily to stir the question. But "the Prussian ship-owners

were all going to ruin," and the Prussian Government very wisely

resolved not to give to British ships privileges which the British

Government denied to Prussian ships. When once foreign powers

began to adopt that course, against which we could not justly

remonstrate, it has been already shewn that the only safe and wise

way was to meet it with concession. Prussia having therefore thus

attained her object, to have manifested any unwillingness to treat

other powers on the same footing, would have been inconsistent

with the principle of our navigation law, which, acting upon

the principle "divide et impera," was more anxious for an equal

distribution of foreign shipping, than for its diminution.

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