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Presented by

Dr. A.R.M. Lower. I965

kiNQSTON ONTARIO CANADA

OBSERVATIONS

TRADE,

CONSIDERED

IN REFERENCE, PARTICUL.\RLY, TO

THE PUBLIC DEBT,

ANB TO

THE AGRICULTURE

i

OF THE UNITED KINGDOM.

BY RICHARD HEATH FIELD,

AuxnoR OF " Elements of a Plan for the Liquidation of the
Public Debt of the United Kingdom," and of " Further
Observations on the Practicability and Expediency of
Liquidating the Public Debt of the United Kingdom."

LONDON :

1822.
VOL. XX. Tarn. NO. XXXIX. K

ftCnH' m^•H^^

OBSERVATIONS

ON

TRADE,

The Reader to whom the practicabiliti/ of Liquidating the Public
Debt may be the subject of peculiar interest, is referred to the
Appendix D.

Universal peace and good-will, would render laws unnecessary
for the regulation of trade. If the benevolent principle bore uni-
versal and unlimited sway, all regard to partial or particular interest
would merge in a comprehensive sense of the interest of the whole.

But the unhappy influence of the malevolent principle narrows
human action into a system of caution and guard : the best directed
efforts of benevolence are contracted into limit in their application,
not by the finite nature of human power only, but by the dictates
of prudence and experience.

It is however not the less clear, that all human action not ori-
ginating in the benevolent principle, is defective; and in reference
to this axiom of universal application, the intercourse of domestic
and foreign trade becomes a subject of moral interest, co-ex-
tensive with its political importance.

The various productions of nature and of art stimulate industry
by the desire of possession, and administer to the wants, the com-
fort, and the refinement of mankind. The encouragement of labor,
and the easy exchange of property, subject to the limitation only
which the necessity of human affairs prescribes, are, therefore, prin-
cipal objects of legislation and government.

The limit which this necessity, duly considered, prescribes to

3] Mr. R. Heathfield, on Liquidating the Debt, fy. 147

the intercourse of trade, in the instance of Great Britain, may be
reduced to two considerations ; namely,

Natiomd Protection, and Constancy/ of Individual Pursuit or
employment.

And the" more extended the interchange of the products of labor
and ingenuity can be rendered, without imprudent hazard in these
respect's, the more will the law by which man is bound to love his
neighbour as himself be fulfilled.

For Protection, the United Kingdom depends chiefly upon ma-
ritime power. The encouragement of British navigation is there-
fore essential to all the political calculations of British trade.

And as the United Kingdom depends for internal peace, order
and satisfaction, upon maintaining an even and uninterrupted course
in the direction and application of capital and of labor, the con-
sideration of Constancy of Individual Pursuit, or the stability or
fixedness of her various relations, should be entertained with anx-
ious solicitude. 'Ihese various relations are;

The reciprocal relations within the limits of the British Isles.

The reciprocal relations of the several parts or members of the

Empire, comprehending all countries under the British do-
minion.

And the relations of the British Empire with Foreign countries.

The soil, climate, population, and marine position, are the chief
elements of political power.

Industry is the active and moving principle, which renders these
several elements of power productive and eflective.

The British Empire possesses zcithin itself to an extent with-
out example, these elements of power, in a state of combination
peculiarly favorable to the excitement of industry, and to the
development of the means of protecting the propeity which
becomes the effect of industry. The soil and climate, the minerals,
the fisheries, the insularity of the United Kingdom ; the variety
of soil, climate, production and the maritime distance of the British
possessions and dependencies, in North America, in the Antilles,
in New Holland, in Asia, in Africa, and at the entrance and in the
Isles of the Mediterranean Sea ; and the numerous people who in-
habit these countries — laborious, inventive, enterprising and per-
severing, present a combination unparalleled in the History of Na-
tions. It is the province of the Statesman, to develop these vast re-
sources ; and however extensive the object may be, an attentive and
undeviating regard to first principles will produce a simplicity of
action, the least exposed to the risk of error or miscarriage.

Considered in reference to the intercourse of trade, a due regard
to first principles would require that duties and taxes should be
limited, throughout the Empire, to the proper annual expenses of

148 Mr. R. Heuthfield, on Liquulat'mg the [4

tlie State, and of tlie several local Governments ; that the readiest
and least expensive communication, by means of roads, bridges,
internal navigation and docks, should be provided ; that the ports
and harbours of the kingdom should be the subject of careful
attention and improvement ; that the utmost faciliti/ should be
accorded to the transmarine British carrier, and that the laws of
export and import, throughout the Empire, should be consistent
and uniform in principle, and clear and distinct in application. A
system which appearing to consult the interests of the individual
only, would result in the great advancement of the State in effective
power and authority, and Mould practically illustrate the principle
of " Free Trade," by modes of application to which exception
cannot be made.

Keciprocity of advantage is implied in the exchanges of property
which constitute Trade.

The exchanges of the produce of the Country for the produc-
tions (jf the ToH/i, Ziilhin the British Is/es, are of reciprocal ad-
vantage to the cultivator and to the artificer and manufacturer, and
consequently, are beneficial to the nation.

The exchanges of property between the British Isles and the
Ihitish possessions and dependencies in North America, in the
Jhiiilles, in Asia and elsewhere, are of reciprocal advantage to the
several members of the Kmpire engaged in this intercourse.

The exchanges of property heticccn the several parts or members
of the Empire and Foreign countries, are of reciprocal advantage to
the British and to the Foreign subject, and consequently to the re-
sj)cctive countries.

I'utal though all these exclianges are of reciprocal advantage ; al-
though theUniled Kingdom is benefitedbyeach(if these classes of ex-
changes of property, a clear distinction arises in respect of each class.

In the instance of the exchange of property between the Country
and the Tozcn, zcilhin the British Isles, ail the parlies receiving
advantage are British ; the British advantages are double in every
instance of such exchange, and the interests which are thus created,
are in the heart of the Empire : to the extent to which these interests
can be carried and sustained, they are identified with the existence
of the J'^mpire, they are of the most constant and permanent
character, and their prosecution and extension tend to promote
the home or coasting navigation, and thus to create a national arm
for protection, in the seamen who are, by these means, brought
into activity.

In the instance of the exchange of property between the British
Isles, and the British, possessions and dependencies in the various
parts of the globe, all parties receiving advantage are British sub-
jects: the British advantages are again double in every instance of
sucli exchange. In respect, however, of the advantages acquired
by the dependent member of the Empire, and which become

5] Debt, and on Agriculture, Trade, ^c. 1 49

located or fixed therein, the benefit is less certainli/ permuneutli/
British, than in the instance first mentioned, of the intercourse
within the British Isles; because the dependent country may
cease to be a Briti>h dependency. But in counterpoise of this
disadvantage, so long as the connexion be maintained and continued,
the interchanges being effected through the medium of British
shipping, the national arm for protection is invigorated and
strengthened, in a degree commensurate with the distance of the
dependtnci/, the salubrity of its climate, and the bulk of the com-
modities interciianged.

In the instance of the exchange of property between the several
parts or members of the British Empire and Foreign countries, the
mtcrcourse, under dift'erent degrees of probability, is liuhle to
interruption ; one only of the jiarties receiving advantage is Ihilish,
the advantages arc divided in the \arying proportions of the varying
circumstances and different relative situations of each of these
Foreign countries to the I nited Kingdom ; and it is to be well
observed, that the intercourse with some I oreign countries is con-
ducted chiefly in Ihilish shipjiing, the intercourse with other
Foreign countries, on the contrary, is conducted chiifij or entirelif
in iOreign shipping.

Here then are guides which leave no question as to the policy
of giving the utmost facility and encouragement to the interchanges
of property, within the L nited Kingdom, and which indicate dis-
tinctly, the motives for facilitating such interchanges, Oetwcen the
several parts or members of the Empire.

The expediency of extending equal encouragement or of apply-
ing the principle of " Free Trade," in the same latitude, to the
intercourse of trade extending be\ond the limits of the British
Empire, or to ioreign trade, is not equally clear. In a state oi
" I iiiversal peace and good will," the principle of" I'rce Trade''
ought to command universal assent. L iider the unhappy dispo-
sition of man to usurp the rights of man, and of Nations to give
body and force to this disposition, it must be subjected to pruden-
tial calculation.

The principle of " Free Trade, ' in its unlimited application,
merges t!ie distinction between Uritish i\griculture and Foreign
Agriculture, between British Navigation and Foreign Navigation.
Losing sight of these distinctions, and of the distinction between
a constant and an irregular course of demand and supply, its
advocates assume, that the immediate rate of the money price of
commodities may beallov.ed to govern the dealer and consumer,
without regard to any other consideration ; and they, of course,
contend, that this system of action would the most efi'ectually
advance everv iiriiish Interest, The conclusion appears to be too
general ; but even in respect of Foreign Trade, the nearest ap-

150 Mr. R. Heathfield, on Liquidating the [6

proxinialion to the principle of " Free Trade," consistent with the
considerations of Natiotial Protection and Constancy of Individual
Pursuit, cannot be too ardently desired nor too sedulously pro-
moted. [See Appendix A.]

Preparatory to a more connected view of the subject under
consideration, three important changes, which have occurred during
the last fifty years, of a decided character in their bearing upon
Production, Trade and Navigation, will be noticed ; — incidental
to which, some observations will be offered upon the nature and
effects of Market.

The changes to be noticed, are ; —

"^rhe change of most of the dependent British provinces of
North America, to independent and rival maritime States.

The abolition of the British trade in slaves.

And the change from comparative/ 1/ low, to high constituents
of cost, in respect of the agricuitura} productions of the United
Kingdom,

Each of the two first mentioned of these changes; namely, the
change of most of the dependent British provinces of North
America to independent and rival maritime States, and the abolition
of the British trade in slaves, constituted a great, decided and
permanent change in the relative position of Great Britain, and
required a decided change in the course of her policy. Without
changing her political maxims, a clear and decided alteration in
the application of those maxims, appears to have been required.
The principles which indicated the expediency of such alteration,
appear, however, to have been recognised of late only. Upon the
representations, indeed, which have proceded from merchants, and
other parties, actuated by a sense of particular interest, partial
changes have received the sanction of the Government and of the
Legislature ; but until the act of the last session of Parliament, *'for
the further regulation of trade to and from places within the limits of
the charter of the East-India Conipany," by which British ships
are permitted to sail from the place of Asiatic growth to the country
of consumption gcueralli/, the principles upon which such changes
were required, do not appear to have been apprehended with the
strength, and applied with the effect, required by their latent
pozcer and practical importance.

Whilst the United States of America were dependencies of the
British Empire, the British Government, with great clearness and
strength of judgment, encouraged the Agriculture and Navigation
of those countries ; the plantations in which were emphatically
called " British Plantations," and the ships of these British de-
pendciit icb were cntilltd to the privilege of a Britiyh register, as

7] Dehty and on Agriculture, Trade, &^c. 151

the shipping of the American provinces continuing under the
British Government, still are.

The West Indies and Great Britain, and the Continent of
Europe, through Great Britain, presented markets for their pro-
duce; the staples of which were provisions, lumber, ashes, tobacco,
and rice.' And to the supply of these markets, the planters and
n)erchants assiduously directed their attention, in all the particulars
which are calculated to promote a current and advantageous sale.

Thus possessed of the markets of the West Indies and of Europe,
the change in these States from " British Plantations," giving
employment to British capital and British shipping, to independent
and rival maritime States, does not appear to have been met by
sufficient regard to the remaining resources of the British Empire.
When the plantations or farms of Virginia, Georgia and South
Carolina ceased to be British, in respect both of produce and
shipping, extensive supplies of cotton wool, rice, and probably
tobacco, might have been obtained from the British Asiatic pro-
vinces, not only for the supply of CJreat liritain, and the depen-
dencies of the British Empire wherein such productions were re-
quired, but also for the supply of the continent of Europe, at less
t/ian the American prices.

But it does nut appear that upon the acknowledgment of the
Independence of the United Slates of America, any greater faci-
lities of intercourse with the British Asiatic provinces were ac-
cortled to the British merchant; the British intercourse with those
extensive, produdive and cheap countries, continued in monopoly
to the East India Company,* and that monopoly held the British
trade wi'h India in severe check.

When the British trade in slaves was abolished, BritishTrop'ical
Agriculture' in the West, became limited to the then actual extent
of Ihitish cultivation. The estates in cultivation no longer ad-
mitted of increase, either in number or extent, because fresh
supplies of capable laborers were forbidden to the liiitish planter.

This limitation does not, however, prescribe a limit to demand

• Very little Cotlon-uwl was grown in Nor;h America until after llic
declaration of American Independence.

^ It is not intended to convey any oilier than rcspeclfiil sentiments of
the East India Company, under whom the great fahric of tlie British Asiatic
Government has arisen! Still, however, it has happened that the very ex-
pensive shippinj; system ot the Company, and their management of the
commercial property of priv;uc trader?, uiild gradually hroken down by the
siih.-titution of the present more enlarged and liheral system, neatly ex-
cluded all East Indi.in produce of great bulk, compared v.-ith its value, from
the European market, throuijili the mediun) <.f the I}riti!,h flag.

' The words "Tropical Agriculture," as utedin this Essay, arc not intended
to be confined to their strict geographical sense, but to include the countiirs
on cither :-ide of the Tropics in tlic hotter climates.

152 Mr. R. Heathfield, on Liquidating the [8

for the produce of Tropical countries ; the disposition to the
consumption of sugar, coffee and other Tropical produce, and the
abihty to purchase sucli commodities remained unaffected by the
determination of the British Nation, iiot to extend the cultivation
of the British possessions in the West. The demand for Tropical
productions, so far from being reduced, is increasing, particularly
Avith the increai^ing population of the two continents of America.

When this limit to the British employment of slaves, and
consequently to British shipping, was imposed, national com-
pensation was again presented in the British Asiatic provinces.

Those provinces present an inexhaustible resource for sugar,
and, it is presumed, coffee, at prices against zcliich it would be
impracticable to maiitain successful competition by means of the
labor of slaves.* The Act of the last session, already mentioned,
permitting a direct commercial intercourse, in British ships,
between the British ports in Asia and the world generally, at length
recognises, and to great extent applies, the principles of British
policy, to tile circumstances occasioned by the change of relation
in the American provinces and by the abolition of the Slave Trade,
and affords a reasonable ground of expectation, not only that the
British Flag w ill continue ascendant, but that the demand for slave
labor, will decline in the Foreign Settlements. [See Appendix B.]

The third and last change to be noticed, namely, the change from
comparatively low, to high constituents of cost, in the cultivation
of the United Kingdom, has very considerably, but it may be
hoped no\ permanent 1 1/, affected the United Kingdom in her powers
of production, and in all her trading and commercial relations.

In particular, this change has already very considerably lowered,
and threatens further to lower the impulse to the growth of British
corn, and also threatens the most destructive effects to the British
land-owner and fanner, from the importation of Foreign corn.

The consideration of the nature and effects of Market, will
lead to the more distinct apprehension of this subject, and will
illustrate the subject of trade generally.

A benejicial market is the first and last object of Political
Economy : a beneficial market excites to enterprise and exertion
by the promise of advantage which it offers ; a beneficial market
accords the return to active capital, compensation to labor, and
rent to the proprietor of the soil, "^rhese advantages must be
derived from the market , or they cannot be enjoyed.

The causes which, without having recourse to bounties or re-
strictive laws, dispose to a market becoming and continuing bene-
ficial, are ; —

• The difference in the rjuulili/ of the products of the East and West will

be noticed hereafter.

9] Debt, and on Agriculture, TradCyS^c. 153

Skill in cultivation and preparation for sale — Capital — Con-
sumption or demand — Lore constituents of cost — Low charges
of transit.

The causes which, on the contrary, indispose to a market becom-
ing or continumj:; bcneticial, are; —

Deficiency of hkill ni cultivation or preparation for sale — Defici-
ency of capital — Deticiency of consumption or demand — High
comlitueuts of cost. — High charges of transit.

The British Empire comprehends, in a very high degree, the
means necessary to the enjoy UR-nt of beneficial markets.

The impediments to the eiercise and exertion of t/tuse means, now
existing, vert/ greatly reduce or whollif prevent the enjoyment of
that advantage.

The cultivation of the British Isles zs skilful ; the capital deter-
minable to that object abundant ; most of the costs of production
and trinisit depending upon individual enterprise, and upon the
ingenuiti/ and skill of the artificer and maniif'acturer, are low ; and
the consumption or demand for corn, (whatever may be the present
effect of the productive harvest of the year Ib'JO) through a consi-
derable length of time, has exceeded the native growth or supply.*
But although the market for corn might, upon these considerations,
be expected to have been singularly beneficial, the higli costs and
charges of pnjduct ion ocaxsioncd, chiefly, by the present system of
duliesj taxes and rates, derange the economy of this great market
of the country, and deprive all, either directly or indirectly de-
pendent upon it, of ihc case, satisfaction, and power to stimulate a
spirit of enterpriic, wliicli they would otherwise enjoy and com-
mand, and in general would exert.

The average prices of the British market for corn, very far ex-
ceed the prices of corn in the markets of the world generally ; and
a high average price is in some measure assured, by checking the
introduction of Foreign corn to the British niarket. The price
thus assured to the British grower is more than adequate to the
costs of production, including rent, if the public annuities and the
maintenance of the capable poor be abstracted.

These claims being remitted, considerable reduction in the prices
of corn and other commodities might by degrees be experienced,
as the costs of jiroduction should subside, consistently with the re-
storation of the farmer to a condition to make a liberal return of rent
to the landlord.

The principle which deprives the British market for agricultural

' The average quanlity of wheat and flour added to the consuraplion of
the country from the importation of Foreign wheat and flour for the years
1813, 1816, 1817, 1818. and 18)9, being five years of peace, was 477,738
quarters. Sec A,ppcudu C.

154 Mr. R. Heathfield, on Liquidating the [10

produce, of a character beneficial to the landlord or tenant, inheres
in the levy of the money required jor the payment of the public
annuitant. The effect of this principle, upon the costs of produc-
tion, cannot be estimated by the mere numerical amount of the
annuities paid to the public creditor; nor by the combined amount
of these annuities, of the Sinking Fund, of the charges of collection
and management, and the advance which is necessarily made by
merchants and dealers upon the duties paid by them.*

These several particulars may be taken in round numbers as
follows :

Amount of annuity and interest on Unfunded Debt payable to
the public .------32 millions

Sinking Fund (reduced from 17 millions) - 5

Expenses of collecting and charges of management,
7^ per cent, on 40 millions, - _ _ - 3

Advance made by the merchant, manufacturer,
and dealer, upon duties paid under the heads of Cus-
toms and Excise, 25 per cent, on 40 millions, - 10

50 millions.

Unfortunately, however, this aggregate, although it shows that
the consumer ought to ^^y fifty millions, in respect of thirty -two
millions to be paid to the public creditor, exhibits only a small part
or proportion of the effect of the system of public annuities upon
the costs of production, and consequently upon market.

Fifty millions added to, or combined with, the cost of the seve-
ral commodities subject to duties of Excise and Customs, require
an advance in the price of such commodities to that extent. The
consumer does, or should, through the medium of these commodi-
ties, pay the sum of fifty millions; unquestionably a very conside-
rable sum: but the simple addition of fifty millions to the cost of
the whole of the commodities vended within one year in the United
Kingdom, would not have added more than twenty per cent, to
prices, computing the annual amount, previous to any advance on
this account, at two hundred and fifty millions.

The great and destructive effect of this primary addition to
money prices, upon market, is experienced in the action of price
upon price. Malt, beer, spirits, wine, leather, salt, soap, candles,
coals and other conniiodities rerjuire, in the aggregate, an increase
of price to the extent of fifty millions. If this advance be paid,
every consumer of these commodities, who commands any means
of endeavour to remove the burthen from himself, at least attempts

' See " Further Observaiions on the Practicability and Expediency of
Liquidating the Public Debt of the United Kingdom,"' i^/w/f/j/c^cer, vol, xvi.
pp. 491—493.

11] Debt, and on Agriculture, Trade, S^^c. 155

to advance the money price of whatsoever he may offer either to
rent or to sell ; the landlord to advance the rent of land, that he
may in bis receipts find a counterpoise to his additional expenditure ;
the tenant to advance the prices of agricultural productions, that
he may recover the increase in the constituents of the costs of
production : and a favorable co7ijuuctiirc ' enables these several
parties to effect such purposes. The manufacturer, for the same
reasons, and in like manner, advances the price of goods. The
advance in money prices becomes general. The attempt to regu-
late price by price is inseparable from the principle of barter,
through the medium of a money price.

U the supplies to a farm be increased in money price, through
the direct operation of duties on such supplies, that increase of
price requires an increase in the price of wheat and other produce ;
an increase in the price of v, heat, requires an increase in the price
of labor, and through the medium of labor an increase of price in
every article of production in which labor combines. An increase
of price in such productions requires a fresh and distinct advance in
the price of wheat, and a further advance in wheat again requires
an increase in the price of labor generally, and such further increase
in the price of labor should re-act upon the price of wheat. In
like manner it is necessary that an increase of price should be
communicated throughout the community. The burthen of the
duties which render necessary this new arrangement of prices,
cannot be generalised or distributed, by the simple addition
of the amount of the duties, or of the duties and the concomitant
charges, but if effected, must be accomplished by means of the
cominunication of the increase in price, experienced in respect of
the objects directly taxed, to all national productions. Price shoidd
be communicated to price, or bv one commodity to another,
throughout the whole chain of dealing, and these increased prices
act, or should act and re-act, one upon the other so as to effect the
general and equal distribution of the burthen of the duties imposed.
The merits of this important topic may be tested thus ; —
If the lands in cultivation, in the United Kingdom, be estimated
at fifty millions of acres ; the rate of price now required for the
produce of the land, at six pounds per acre ; and it be admitted
that one /m//' the rates of price now required, only, would have
been required in the year 1790, if the country had then been en-
tirely free from debt : it follow s that in respect of the produce of
the land, money prices ou^ht to be increased in consequence of the
Public Debt, by the addition of one hundred and fifty millions ;
to which must be added at least twenty millions for the greater
price now required for manufactured goods and other conmiodi-

' The late WAi prcbcntcil iliat favorable cunjuncliue.

156 Mr. R. Heathfield, on Liquidating the [12

ties, through the operation of duties rendered necessary by the debt,
besides the sum of fifty millions first mentioned, as being directly
incorporated in the price of Excise and Customs articles. In the ag-
gregate, two HUNDKED AND TWENTY MILLIONS, Or SEVEN
TIMES, nearly, the amount of the annuity paid to the public credi-
tor. If the increase of price thus required be obtained, the evil is
felt in the checks to industry, incident to a system of high prices.
If the increase of price thus required be not obtained, the evil
becomes aggravated, and fatal to the harmony and well-being of
the community. The principle of justice, the very key-stone of
the social union, is disturbed.

Without claiming for this statement more than some approxima-
tion to truth, it is obvious that the distribution of the duties through
the medium of money prices cannot proceed by the simple addition
of any given amount of impost, but if effected, proceeds by the
communication of price from one commodity or class of commo-
dities to another, and again by the repeated action and re-action of
these increased prices. And it is equally obvious that British
agricultural productions require at market, inthe aggregate tnoney
price, an increase since the year 1790, very far indeed exceeding
the simple or primari/ amount of the duties or duties arid taxes,
which have been imposed since that year, and that the increase of
price required, although obtained under other circumstances,
CANNOT now be obtained.

The remedy for this great evil is plain and simple ; namely, the
practical application by the community as a body politic, of the
principle already ingeniously and ably applied by the individual,
of supplying the market with productions (the rights of the producer
being reserved) at the lowest possible constituents of cost. The
application of' this principle in the conduct and direction of the
public business of the country, would promptly and effectually re-
store the British market for the national produce, to a healthy and
beneficial state.' The means of liquidating the claims of the pub-
lic creditor, without which the present^ heavy costs of production
do not fairly admit of being materially lowered, are plain and easy,
if the liquidation of the debt become the object of the concurrent
will and desire of the nation. The liquidation of the public debt
would clear the industry and dealings of the United Kingdom of
the weight of two hundred millions and upwards in the money
prices re^wiVerf for commodities ; and the peculiar state of the

' Applied to agriculture, it would admit and would lead to the highest
rate of profit, and would of course admit of the division of protit necessary ta
maintain the proper rights and station of the landlord and tenant, and of
sufficient and proper wages being paid to the hubbandnian.

^ Autumn, 1821.

13] Debt, and on Agriculture, Trade, (§t. 157

country presents the means of effecting this object, without the risk
of materially deranging the state and condition of property, or of
society. [See Appendix D.]

Under the advantage of these explanations, the trade of the
British Isles, the British trade with the dependencies of the Empire,
and the Foreign trade, will be considered in connexion, with a view
to show the means of establishing each according to its order and
bearing upon the interests of the community.

The productions of the earth are the bases of all trade, and the
source of the wealth of nations.

The British trade, in common with the trade of all other
nations, rests upon this foundation ; — but the skill and industry of the
British people in the prosecution of the useful arts, combined with
the great means actually developed in the distant dependencies of
the British Empire, enable them, not only to trade very actively
within themselves, in the British Isles, and with these dependencies,
but also with Foreign nations, in the products of art, as well as of
nature.

It is sufficiently clear that exchanges of property, uithin the
limits of the British Isles, comprehend in their nature and character,
all the advantages, in respect of the national wealth and power, to
be derived from trade : that the trade of the British Isles uith the
dependencies (f the Empire, combines similar advantages in a very
considerable degree : and it is also clear that the exchanges of pro-
perty Ac/ Kftvi the liritish Empire and Foreign countries, condiiceto
the national wealth and power, but in a less degree, and subject, in
the instance of each Foreign country, to different and varying con-
siderations.

By what means then can each of these important and intimately
connected interests be advanced in its proper degree and propor-
tion ?

The whole of the agricultural and spontaneous productions of
llie British Empire, in the various parts of die globe, may properly
be designated lJriti!>h productions, which again may be reduced to
two parts or divisions ; namely,

The Agricultural and spontaneous productions of the British
Isles ;

The Agricultural and spontaneous productions of the British
dependencies.

The first are the foundation and chief internal sources, the
second are the chief external sources, of the national wealth aiid
power.

The national wealth and power arc weakened and repressed in
these principal sources ;

158 Mr. R. Ileathfield, o)i Liquidating the [14

By fiscal institutions which exceed in their purpose the current
annual expenses of the State.

By institutiofis or laivs which prevent the direct conveyance of
these agricultural and spontaneous productions, from the country of
production, to the country of consumption.

The Jiscal institutions of the United Kingdom very considerably
exceed in their character and extent, the provision necessary for
the current annual expenses of the State ; and, by the great amount
required lo sustain the system of public annuities, particularly by
the action and re-action of price upon price, or the excessive costs
of production incident to the system of public annuities, bear down
and baffle the utmost eft'orts of industry, ingenuity and skill, in the
cultivation of the British Isles ; — sufficient price cannot be reco-
vered at market to compensate labor, and to maintain the condition
of the landlord and tenant. The excessive costs of production have
actually cast the United Kingdom, in respect of its agriculture, into
a state ot severe depression, uneasiness, and distress.

The same cause affects the agricultural interests of the British
dependencies, — which may be considered under four divisions ; —
namely.

The Western Tropical dependencies — the West-India Islands
and Settlements.

The Eastern Tropical dependencies — in Asia, and in the Indian
seas. [See Appendix E.]

The Northern dependencies — Canada, Nova Scotia, and New
Brunswick. ^

The Southern dependencies — the Cape of Good Hope and New
Holland, including Van Diemen's Land.

The agricultural interests of the Western Tropical dependencies
are affected by the highjiscal institutions, or high revenue system
of the United Kingdom, not by preventing the more extensive cul-
tivation of those countries, because the law which prevents the
further importation of African laborers, prescribes the limit to their
cultivation ; — but by lowering the profits and checking the prospe-
rity of the planter.

The means by which the high revenue system of the United
Kingdom produces these effects, appear to be; —

First. By repressing and lowering the extent and condition of
the population of the British Isles, the chief market for the produce
of the Western Tropical plantations.

Second. By the high duty on sugar and other productions of
these dependencies, which cannot fail to check consumption.

Third. By the additional cost, incidental to the high revenue
system, of the extensive annual supplies derived by these dependen-
cies from the British Isles.

15] Deht^ and on Agriculture, Trade, S;c. 159

Fourth. By the additional expense of conveying the produce to
market.

The high revenue system of the United Kingdom does not
equally aflFect the agriculture of the British Tropical Eastern de-
pendencies.

The cost of the Eastern Tropical productions does not materially
depend upon British supplies ; the demand for the British Eastern
productions is more general than for the British Western produc-
tions ; and the British market being secured, chietly, to the Western
planter, the Eastern planter is not affected by the numbers and con-
dition of the British people, in the same degree as the Western
planter. The high revenue system of the I'nited Kingdom does,
however, afl'ect the agriculture of the British Eastern dependen-
cies ; —

By repressing and lowering the extent and condition of the po-
pulation of the British Isles, and consequently preventing consump-
tion of Tropical productions grown or found in the Eastern depen-
dencies, and either not grown or found, or not in sufficient extent
and variety, in the Western colonies.

By the increased charges and expenses of navigation.
By the increased charges on goods passing through the United
Kingdom to Foreign countries.

The high revenue system affects the agricultural and native inter-
ests of Canada, Nova Scotia, and New Brunswick ; —

By repressing and lowering the extent and condition of the popu-
lation of the British I^les.

By the additional cost of the extensive supplies derived by these
countries from Great Britain.

By the additional expense of navigation, and charges in British
ports.

And although similar causes do not at present operate to much
extent in regard to the Cape of Good Hope, and New Holland,
the objections arising from the high revenue sy»tem are the same
in kind, in respect of these colonies.

The extension of the privilege of direct communication between
the British dependencies in the other parts of the World, as well
as from the British Ports in Asia, would tend to the increase of
demand unon the agriculture of those dependencies ; but whether
such an extension of privilege be in any and what degree expedient,
is a question involving many and various considerations, and must
be determined, in each particular instance, by a careful examination
in detail, and being of inferior importance, will not now be dis-
cussed.

It is sufKciently clear, then, that the interchanges of property
within the British Isles, and between the several parts or members

160 Mr. R. Heathfield, on Liquidating the [16

of the British Empire, and the ease and satisfaction to arise there-
Jrom, will be commensurate with the relief of the country from the
burthen of fiscal institutions, and consequently, that the liquida-
tion of the PUBLIC DEBT is an object of common and general in-
terest, to the British subject. Unless that impediment be removed,
the principles upon which the prosperity of the Empire must de-
pend, cannot be successfully reduced to application.

Great Britain never before commanded resources so vast, in
her soil productive, in her minerals rich, in her ingenuity and
i;/(/w.s/r//, unrivalled ; by her dependencies, combining the four quar-
ters of the globe in one great commercial and maritime empire ;
gradually moulding some of her political institutions to new and
extraordinary circumstances, she is required by every sound and
reasonable motive to remove the calse by which, notwithstanding
her riches, her ingenuity and industry, her mighty combination of
means, and her political skill and sagacity, she is deeply embar-
rassed, and is threatened with an accumulation of distress and
misery.

An examination of the principles which apply to the foreign
TRADE of the L nitcd Kingdom will lead, by motives not equally
powerful indeed, but by powerful and pressing motives, to the con-
clusion that the liquidation of the public debt is an object of deep
interest in that bearing and relation.

The trade of the liritis/i Empire rvitli Foreign countries, as well
as the trade uilhin the British Umpire, has its source in agricul-
ture, and spontaneous or natural productions.

As it is the proper business of every country to develop its in-
ternal resources, whence the national wealth and power are chiefly
to be derived ; the importations from Foreign countries, which dis-
place the demand for Native productions, become the subject of anx-
ious attention ; — not in any narrow or confined spirit, not for the
purpose of considering how the interest of a neighbour may be sub-
jected to selfish views ; but for the fair and becoming purpose of
enquiring into the cause of an effect so adverse, not only to the in-
terest of the particular nation which may be immediately and directly
affected, but adverse to the general prosperity of nations.

The greater the opulence which Great Britain, for instance, may
derive from her agriculture, and her other copious sources of wealth,
the greater her consumption, the greater her demand for the pro-
ductions of climates and countries yielding productions, which not-
withstanding the most ample development of her own resources, she
would require. Even the advocates for the importation of Foreign
grain might, in the event, find the most extensive and satisfactory
result, from a system the most effectual to the extension of British

17] Dtbt, and on Agriculture, Trade, S^c. 161

agriculture. The increase of population, and the improvement in
the condition of the population, which would be incident to such a
system, would probably, in all but very abundant season?, render the
importation of Foreign grain necessary; but whether that effect lol •
lowed or not, the consumption of all materials of Foreign growth
or production required for manufacture in the L'nited Kingdom,
and of Foreign luxuries not produced, or not produced in sufficient
quantity withm the Empire, would increase to great extent.

Such importations from a Foreign country are clear sources
of benefit to the importing country, as well as to the exporting
country ; —

The grain, if required, because without displacing the demand
for grain of native growth, it would supply the defect of crop ari-
sing from the course of seasons, or compensate for the inability of
the country (if unable), in good seasons, to feed its population.

The materials for manufacture, as a medium in which to em-
body labor, and as affording the means of varying the excitement by
which the circulaii<in of nii<ney is (juickened.

Luxuries, by prompting aciivit\ , through the desire of possession,
and conscqiirntly, by a;iaiu quickening circulation.

In like manner, a Foreign country, by developing its proper re-
sources, becomes better eiiableil to supply and to purchase of Great
Britain, and the latter country has, coiisecjuently, an interest in the
prosperity t)f the Foreign country.

It does not however follow that it is eligible for Great Britain to
trade with a Foreign country at the expense or sacrijice of her natural
resources. A crisis may indeed be too readily supposed, Mhich may
render it doubtful whether sueli a Foreign tradi- be, or be not, the
least in the choice of evils: but the existence of such a crisis must
be admitted to be e-vidence of the depression of native industry, mid
consequently of' the national wealth and power being ajj'ectcd at the
source. Siich a Foreign trade may be submitted to as a temporary
expedient, but the consideraiion of its tendency must lead to an
anxious soliciludi to relieve the native industry.

Under the actual circumstances of the L'nited Kingdom, relief
of the native industry may appear to be presented in either of two
opposite modes; —

By a system having for its object the advance of the price of agri-
cultural produce to the standard ol the high costs of production.

By a system having for its object the reduction of the costs oj
production.

The first mentioned system has been tried, and \vds failed ; the
United Kingdom caunot be wholly cut otY from sympathy with the
maikets of Foreign Nations; and as higli prices, if obtained by the
agriculturist, vender it necessary that high prices should be ob-

VOL. XX. Pam. NO. XXXIX. L

162 Mr. R. Heathfield, on Liquidat'mg the [18

tainedyVow the agriculturist ; as price does, or, in order to satisfy
the ends of political justice, ought to engender price, the case can-
not safely be supposed in which the effectual and permanent relief
of British industry could be obtained by means of a system of high
prices.

A system of low constituents of cost, on the contrary, would as-
sure the accomplishment of its purpose.

That system, carried to sufficient extent, would render a mode-
rate price for agricultural productions a high bounty upon produc-
tion, and would stimulate the United Kingdom, and its vast depen-
dencies, into the fullest and most beneficial activity: beneficial, not
to the British Empire only, but to all Nations. That system would
most effectually and permanently establish a system of interchange
with Foreign countries, by enabling the British to supply the Fo-
reign subject at the lowest rates of price consistent with the rights
(as to profit) of the agriculturist and manufacturer, and by rendering
necessary for the purposes of the British manufacturer, and for the
general consumer, the largest importations of Foreign products.

The encouragement and extension of the Foreis.n trade of the
United Kingdom, therefore, depend essentially upon the abandon-
ment of the high revenue system, or the Liquidation of the Public
Debt. Without the previous liberation of the trade, or of the in-
terchange of property within the British Efupire, from the heavy
restraints imposed by the high revenue system, how can the freedom
of Foreign trade become the subject of liberal and enlightened dis-
cussion (although considerable benefit may be derived from enquiry)
with the probability of any result effectual to the well-being of the
agriculturist, the merchant or trader, whether domestic, colonial,
Foreign, or of any other character or description ?

The " Free trade" required, is then

First — The freedom of interchange of property within the British
Isles, from the great and depressing weight produced by the subtle
and various, the direct and indirect, the accumulated and aggravated
action of the duties and taxes required for payment of the public
annuities.

Second — The same freedom in respect of the interchange of
property between the several parts or members of the British Em-
pire.

Third — The utmost freedom in respect of the interchange of pro-
perty between the British Empire and Foreign countries, consistent
with the conservation and ascendancy of the British marine, and a
reasonable regard to the stability or probable continuance of the
Trade with the several Foreign countries.

The principle of '' Free Trade," so applied, appears to be calcu-
lated to produce a greater sum of wealth, prosperity and power.

19] Debt^ and on Agriculture, Trade, t^r. 163

than has ever been enjoyed, by this or any other Nation. — Each
class, under this system, would advance the interest of each and of
all classes, throughout the social polity ; a general facility of inter-
change, throughout this Empire, would stiuuilate exertion, assure
general abundance, and a constandy increasing consumption. The
same principle, although modified, would, in its degree, produce
the like effect in respect of the interchanges with Foreign countries:
and the British Nation, in the enjoyment of her own vast resources,
would illustrate by her example to all the Nations of the Earth,
the excellence and the \\isdom of an enlarged benevolence in poli-
tical design and comprehensive simplicity in Political ludtitution.

APPENDIX A. (P. G.)

The consequences of the interrupfinn (if demand in markets
which the lirilish manufacturer mav be actustomed to supply, and
of the interruption oj supplie:^ (^ the material for manufacture, for
which he may be dependent upon Foreign countries, are of a
grave and anxious description. 'I'he vast establishments by means
of which, only, the United Kingdom is enabled to maintain com-
petition in the sale of manufactured goods in I'oreign markets,
notwithstanding the high revenue system, cannot be suspended or
even partially mterrupted, without producing considerable inconve-
nience, loss and misery. The Nation has been repeatedly cast into
a convulsive state, during the last thirty years, by the interruption
of Foreign demand for goods of Hntish manufacture, and of Foreign
supplies of material for the manufacturer; and the exposure to
similar calamities cannot be overlooked in any just estimate of the
nature and value of Foreign commercial connexion. Constancy of
pursuit in the individual, is essential to the n-ell-being of the
conummity. A trade with a country peculiarly exposed to the
chances of interruption, cannot therefore be equally desired as a
trade with a country not subject to the same chances. Vpon this
principle, a trade with Portugal, the Brazils, and other partsof South
America, is to be sought and cultivated with solicitude, whilst a
Trade with some other countries, may be viewed with comparative
indifference.

Tlie effect of conducting the interchanges of property in British
shipping, is the invigoration of the arm upon which the United

164 Mr. R. Heathfield, on Liquidating the [20

Kingdom relies for protection and defence. The effect of con-
ducting these interchanges in Foreign shipping, on the contrary, is
the creation or invigoration of an arm, but too probably to be met,
under a change of circumstances, in adverse and hostile contention.
These distinctions cannot be overlooked in any comparative esti-
mate of the nature and value of trade.

APPEINDIX B. (P. 8.)

The British Nation, in abandoning the further transport of
Africans from their native country, to labor as slaves in their
plantations, could not have intended and really did not intend, to
transfer to otlier and rival nations, the power in wealth and
navigation, which results from the cultivation of the Tropical
countries for commodities of great bulk, particularly sugar, to
be consumed at considerable maritime distance from the place of
growth. It could not consist with the humane purpose of the
abolition of the British Trade in Slaves, and was not in fact
intended, that the care of the unhappy African, upon the middle
passage, should simply be transferred from the British trader,
acting under the provisions of the British Legislature and the eye
of the British Government, to Foreign Nations. But, notwith-
standing the efforts which have been made by the British Govern-
ment, to induce other countries to renounce this trade, and the
extent to which it actually has been renounced by Foreign Na-
tions, the transport of Africans from their native country, for the
cultivation of the Western Tropical regions, is a practice still pre-
tailing in great and dreadful energy.

APPENDIX C. (P. 9.)

An account of the quantities of wheat, and wheat flour, im-
ported into Great Britain from Foreign parts, and also of wheat,
and wheat flour, exported from Great Britain during each of the
last five years, reducing the flour into wheat, at the proportion of
49lb8. of flour to the bushel of wheat, and showing the quantity
thereof, that was added to the consumption of the country from
excess of import.

21] Debt, and on Agriculture, Trade, 8^c. 1 65

Wheat and flour
imported from
Foreign Parts,

Year 1815
181G
1817
1818
1819

Deduct quantity
remaining in ware-
house on the 5tli
Jan. 1820, no stock
being under the
King's lock, at the
commencement of
the year 1815.

Deduct quantity ^
exported. S

Wheat and flourt Average
exported to all price in Eng-
Paits. I land and
Wales.

Quarters.

192,449

209,654

1,029,037

1,582,878

469,657

3,483,675

324,546

3,159,129
770,437

5)2,388,692

Average quantity \
added to the con-r
sumption of the >
country from excess
of import.

26th May, 1820.

S

477,738

(Signed)

Quarters.

per Quarter.

227,947

121,610

317,523

58,668

44,689

770,437

5.

64.

75.
94.

84.
73.

d.
4.
10.
9.
1.
0.

William Irving.

APPENDIX D. (P. 13.)

The proposal, which has for its object the relief of the pro-
ductions and goods anuually consumed iu the United Kmgdom,

166 Mr. R. Heath field, on Liquidating the [22

from an aggregate of cost equal, probably, to two hundred millions
and upwards, cannot fail, from its magnitude, to be received with
apprehension of an inconvenient and dangerous disturbance of the
state and condition of property, and of society.

It n)ay, however, with great ease be shown, that the alteration,
with only sUght exception, might be effected iki a manner not
only free from such consequences, but with the assurance of con-
sequences iinniediately, and generally as well as progressively, be-
neficial.

The object contemplated, is the cessation of the demand of up-
wards of forty millions annually, chietly duties of Excise and Cus-
toms.

The immediate effect of the repeal of the duties of Excise,
or joint duties of Excise and Customs, would be beneficial to the
dealer, because the duty on the stock on hand, which he might have
paid to the Exchequer, would be returned to him ; and to the
public would be beneficial, because all future supplies of such
descriptions of stock or goods would be obtained at proportionally
less cost.

'J'he repeal of duties of Customs, simply, would require more
attentive consideration ; but would admit of being accommodated to
the convenience of the dealers in the several articles subject to
such duties, who would have little difficulty in meeting any well
considered proposal for the permanent relief of their respective
trades, and of the community.' With regard to the immediate
effect of the remission of these duties upon the consumer, there
could not be any difliculty ; — the relief would be general and
effectual.

The ulterior effect in the reduction of the price of agricul-
tural productions, requires to be met with some caution, and the
regulation of the importation of Eoreign grain appears to present
adequate means for this purpose.

If ihe relation of supply and demand immediately regulate price,
the introduction of Foreign corn to the British market admits of
being so guarded, as to assure to the British grower a high and
benejicial price, provided the costs oj production he not excessive.

To this end it would be necessary that the standard of price
which now governs the importation of Foreign grain, should not be
lowered until the costs of British production should be considerably
lowered; until crops produced at the higher costs of production
should have been consumed, and replaced by crops produced at

' The Exci$e Board has an account of the stock of goods in the hands of
dealers whereon duty has been {)aid, and the return of duty could therefore
be easily regulated.

Th« Board of Customs docs not keep a !)imilar 'heck.

23] Debt, aiid on Agriculture, Trade, 6sc. 167

costs dearly and distinctly admitting the competition of Foreign
Trn at a rate somewhat louer than the present re^ulaUon admU.;
SnUkel^anner, as tbe costs of production should st -re su -
side the regulation price of the importation of i'o'^^'g" ^ .t "
mtht be lofvered from time to time, until a PJOP^"" /^^^^ ^^"^
have been ascertained and fixed. 13) >Nhich order of pro«eding
the prL of com might be suthcientl> maintamed to cover the costs

0 production andtvith the P-bable etfect of at^ordmg ^^^^^^^^
advantacre, where every consideration, both individual and national
requ res° hat the advantage .hould be given, namely to the landlord

1 Xlnant ; because the%eduction of the i^-^^^^^ -du'ctio:;
mightbe made gradually,and ^ ^ ^^^'^^j ;:^t^t::b;:a;;S
of the costs of production ; at all tiintb assuring a

liberal rate of Rknt. i j ;„ tl.i« manner

In the operation of a few years, prices would, in this ma ner

subside to L lowest rate consistent with P^^P^^^-P^^^J^^Va
capital and labor, the adequate support ol ^ ^ ^;-7; ^j;/,^
grialcountrN, and the return of a /;/..; u/ rent o ^''^ F ^^^^^^^
The costs of production would be lou; which would 1 uriy and
freely admit■^of^he prices at market, relatnr/y to the costs, being

^'^ithough eight .hillings be;>^«/.../va^/gAprice fc.aln.shel
of wheat vet it' the costs oj production require nine sh, lings il is
^h^U .loi price, aod such a state of market would be ruin-
ous wlnlst on the^ther hand, if the price .ere hve ^^^^
the 'costs of production four shilhngs, per bV^»-^;''Vtl, n i cTpe
be beneficial It does not adnut ot <,uest.on, tha »»^ P" »^'P';
^•hich directs the anxious reduction ot the constituents of co^
whether such cost* be, ni their or.gm, jnihUc or private, is the
foundation of the science of political economy.

The danger of a system of high constituents of cost, ma> be
illustrated bv considenng the p.,ssible cftect of a bad harvest upon
the sute of the country under the present circumstances

On the supposition of forty shillings per quarter for wheat,
being a sufficient price in good seasons, the ex-tement to impo^
tat.on by the Foreign merchant would not be sufhcient to P-; -^;"
advance to 485. 5Gs. and upwards, in the event of ^^ad hane^^^
the farmer would reap only two-thirds or half a ^^^P'^^ut he would
obtain a proportional advance in price: concurrently Mtl. J e ci.s
advantages, he uould have the advantages of a naturn course of
hi^'s ^ iut not so in the actual state of things, m . h.ch a high
comparative price (comparative as to "eigl.bc.ur.ng nnt.onsOjor the
Quarter of wheat, in good seasons, does not adequutely sustam the
farmer The high pr^ce, m the British market, strongly excites and
dilates the Fo%el^n merchant: va.t masses of giamare brought

1«8 Mr. R. Heatlifield, on Liquidating the [24

W^f -'fhrH^ff '" '^" «»^i^iP«li- of us admission into the British
m^//A£>/ the dfference between the price at which wheat can be
imported, and the pnce which the i^riiish n.arket vields, fs a st ol
and perhaps irresistible impulse to store the British gr nar'es vi h

Ihe foreign granaries may at the same time be well supnlied
under the li e expectation. On the instant that the effeTo the
domestic calamity of a bad harvest, shall have been so fe t as to
have earned the periodical average to the price of 80.. per nnar Jr

supplies of Fo.e.gn gram thrown into the great maritime markets
o so! S'""' »^r'r'"'^ ^"^'""' *'"^' ^"^^^ ^'^''-^^'' the p ice
ports had again reduced the market price of wheat. I Jad the >o is
opened tins season -it is believed that half a million o >tte ^f
Fore g„. heat would have been released from the British c a nary
VWiatever proportion half a milhnu of quarters of wheat nraybea.*

n'eare"b?rr'"r""' ,'" '^''' 'V" ^'" "^^^'^^'^ »'"- -"-^ »,"
smnn Tl t^ ^^'"''^ '? ''"' particular only : it may fairlv be pre-

Pon t e 'ma IT T' ^'^^'^T''' ^"»^^'^ ^^""'^ '^^ -• effect
«'po. the ma ket fir more than commensurate with the mere
question o. relative quantity, and the half million of qua ters now
here, would presently have been followed l.y successivrn. d -. 1^
supplies. Jf then It should happ... that the Bru'l fL ' "rdJ
not realise eighty sinllmgs per quarter, from a /W //«;r..s7ror t la
e could not even obtain a considerable advance upon eighty d^
•ngs under circumstances which ought to produce^o him a very
large advance what would be the state of all Jiritish prope7ty^ ^
Undtr such circumstances, ' * ^ '

If the farmer could even pay rates and taxes, what expectation
could the landlord (looking to the farmer's alreadv reduced u
altered state) entertain of obtaining o,n/ rent ? '

upo 1 ma!kf "? ^" "!, "^'- '•" "'"' '''^'' "'"«» ^' the effect
o npr . r""- ^•'^'^"'Pt'"", "Pon the manufacturer, ship-

owner, and upon the revenue ? '

Is the supposition strained, that under such circumstances the
public annuitant could not be paid f circumstances the

Anrl,

' AuUiinn, 18»1.

25] Debt^ and on Agriculture, Trade, 8$c. 169

Or even if wheat should advance, contrary to the supposition
now entertained, to 120s. and 130.s. per quarter, what would be
the effect of a correspondent price of bread, upon all classes and
orders ? and again, upon the Domestic and Foreign trade of the
country ?

The Earl of Liverpool, in the Speech which his Lordship
delivered in the II oust- of Lords, on the 1f)l\\ of May, 1820, upon
the motion ol the Marquis of Lansdown ; — *' 'Iliat a select commit-
tee be appointed to enquire into the means of extending and secur-
ing the I'oreign trade of the country" — expresses himself as fol-
lows ; —

" 'i he Noble Maiquis also truly says, tlial th's general distress
is to be ascribed to the eitnwrdinarif cnnvulsiuiis in Lurope during
the last twenty years ; convulsions which unhinged all the natural
relations between nation and nation, und'e\en between man and
luan ; convulsions whu h have produced the most extensive effects
both on nations and indi\iduals. L nqueslionably, it was im-
possible but that the instability of properly, the creation of ficti-
tious capital, and all the other evils which arose during those
convulsions, should operate in the production of great distress in
every country, long after the rc-establishmcnt of peace should have
caused the cimvulsiau^ themselves to cease.

" Hut the peculiar circumstances of the times — that to which
1 wi.sh particuhirlv to direct the attention of your Lordships, and of
the whole kingdom, is this, — that, great as the distress is in every
country in Kurope, (and certainly it prevails more or less in every
country in I'.urope,) it is, nevertheless, at the present moment
greater in the Lnitcd States of America than it is in any country
m Kurope. I desire any of your Lordships, or any other indi-
viduals who mav be disposed to ascribe the distress under which
we at present labor, to our debt, to excessive taxation, to tithes,
to the poor-rates, or to any cause of that nature, to look at the
United States of America; and 1 think that they will then pause
before thev ascribe the distress which we, or any of the other
countries of Lurope, are now suffering, exclusively or principally,
to any or all the causes which I have mentioned."

The opinions and sentiments of Lord Liverpool arc invested
with the authority of experience, of station, and of talent ; and the
deep impression produced, in particular, by his I^ordship's Speech
upon Lord Lansdown's motion, gives additional interest to the
examination of the important topic of that speech embraced by
the passage now < iied.

170 Mr. R. Heathfield, on Liquidatmg the [26

Lord Liverpool states, that "great as the distress is in every
couDtry in Europe, it is nevertlieless greater in the United States
of i\merica, than it is in any country in Europe," and then pro-
ceedb to desire Noble Lords, or any other individual, *' who may
be disposed to ascribe the distress under which we at present labor,
to our debts, to excessive taxation, to tithes, to the poor-rates, or
to any other cause of this nature, to look at the United States of
America ;" and his Lordship adds, " 1 think that they will then
pause before they ascribe the distress wliich we, or any of the other
conntries of Europe are now suftering, exclusively or principally,
to any or all the causes which 1 have mentioned."

An individual who did ascribe and who continues to ascribe the
distress of this country to the public debt, to excessive taxatioUy
and to ihe poor-rates, has paused and examined the argument thus
publicly and generally addressed and directed, by the First Minister
of the country.

He admits (his observations having reference to tiie date of his
Lordship's Speech) that distress had been common to the United
Kingdom, and to the United States of America ; but although each
country sufFcred distress, the two cojmtries stood directly opposed
to each other in the particular the most essential to internal na-
tional prosperity.

The United Slates of America did not possess within themselves
an adequate market for their agricultural productions, and they
were deprived, by the Peace, to considerable extent, of the exter-
Dal markets which they had been accustomed to supply.

The United Kingdom, on the contrary, as shown in Appendix
C. cited from his Lordship's Speech, had enjoyed the great advan-
tage of a market within herself for more than the whole of her
agricultural productions,' and she had received in her own market a
price very far exceeding the price of such produce in any other
market of the world.

How then is a similar effect to be accounted for under the ope-
ration of causes so opposite? Some distinct, powerful, and evil prin-
ciple, must be assigned to account for this correspondence in result,

AND THAT PK1N( IPLR IS DISCOVEUABLE IN TIIE PUB-
LIC DEBT ONLY. What has occasioned the necessity of high
prices in the markets of the United Kingdom for agricultural pro-
duce ? What has deprived even very high prices for agricultural
produce, of the power of adequately sustaining the farmer, the hus-
bandman, and the land-owner.' Does this gross anomaly admit of
any other explanation than such as shall resolve itself into the
operation of the Public Debt? Ino country in the world, the state

' Sec Appendix C. p. 39.

27] Debty and on Agriculture, Trade, S^c. 171

of which is knouii and understood, is comparable with Great Britain,
in the relative extent of market which she enjoys zcithin herself for
her agricultural pr<jducti<>ns. No country in the world possesses
markets of equal opulence and power in the purchase and con-
sumption of native agricultural productions. No country in the
world is comparable to the United Kingdom, in the high proportion
which the inhabitants of the town bear to the agricultural popula-
tion.

Neither the state or condition of a distant and new country,
nor the vibrations (jf the balance of Foreign trade, can adequately
account for the agricultural distress of the nation under such cir-
cumstances. The cause is deep— seated within the country, and
it operates by the increase and excessive aggravation of the costs of
production, by means of ilie high revenue svstem incident to the
Public Debt.

Mr. Malthus,' at the same time declaring that he is Jar from
being insemibk to the evil of a great national debt (p. 484) has
at some length shown tlie effect which would follow from the
abstraction from society (and consecjuently fronj the market for pro-
ductions) of the unproductive consumers, who derive their income
tlirough the medium of the Public Debt; and under this view has
advanced the opinion, that the evils incident to a public debt cannot
be prevented, without subjecting the connnunity to an evil of still
greater magnitude, in the want of unproductive consumers.

Witli great deference to the aulliority of Mr. Malihus, it is sub-
nntted, that the consetjuence apprehended by him, although an un-
questionable conse(juence of the use of the " sponge," or the ex-
tinction of that class of consumers, could not ensue from any
jrell-principled and systematic litjuidation of the Public Debt.

The number of consumers would, in such case, remain exactly
the same, although the description or character of the public an-
nuitant might be exchanged for that of a landholder, or mortgagee
of land, or that of a creditor of a Bank of deposit, as proposed
'* Further Observations on the propriety and expediency of licjui-
dating the Public Debt,"* or to some other description or charac*
ter arising from the possession and command of property.

"^Tlie public creditor or annuitant is not strictly speaking a pro-
prietor ; but considering him to be such, the liquidation of the
Public Debt would neither add to the capital of the country, nor
diminish the number of proprietors; although, in simplifying Uie

' Principles of Political Economy, ch. vii sec. 9.
"■ pp. 59.60.

172 Mr. R. Heathfield, on Liquidating the [28

circulation of money, it would vary the relation of the public
annuitant from a position which bears destructively upon the best
interests of the country, to some other relation more beneficial to
hitmelf, and of a benevolent aspect towards the community. The
mode by which the distribution of income would be etTected,would
be varied from extreme complexity to simplicity, without disturbing
the comparative position of the different classes of proprietors
in respect of income, but not without essential improvement and
advantage to every description of proprietor, mcludiug the public
annuitant.

Tiie public creditor, who now requires and receives an income,
through the medium of duties, is a party to a system which with-
out the ambitious reach, or malign disposition, or even the intention,
has the effect of the most subtle and severe tyranny. The clainj
of the public creditor can only be satisfied, under the present
systeni, Z/y means of the snccessful exertion of the industry of the
country. 1 he levy of money for the satisfaction of the public
creditor, through the medium of duties, by rendering increased
money prices for the national productions necessary, opposes
the interchange of property, hy preventing production at low
costs ; and the great amount, now required in respect of the public
creditor, has the etfect of oppressing with severe difficulty, nearly all
who arc engaged in the business of agriculture, and materially affects
the manufacturer. Can a class of persons, deriving an income
through such means, in any point of view fje necessary ? Can it
be deemed reasonable ox right, that the hand of industry should
be paralysed by means of the very parties who demand, not only
sustenance and support, but the maintenance of a princely bearing
from that very hand t

I'lic effect of the liquidation of the Public Debt, upon the plan
which has been proposed, could not lower the power to consume
in any individual now entitled to income in the way of a public
annuity. Such persons are fairly and fully entitled to be main-
tained in the comparative situation, as to income, which they now
occupy, and any proposition which might imply a deviation from
that principle, ought at once to be rejected. The object proposed
by the liquidation of the Public Debt is, not the relief of one
class at the expense of another, but the relief and improvement
of the condition of all ; and that relief would be effected, in the
first instance, by rendering unnecessary a considerable part of the
amount now annually levied in respect of the Public Debt, and by
levying the remainder directly upon property, either annually, or
in a sum to be received in full and final satisfaction of the claim
in respect of the debt, as might be best adapted to the situation
and disposition of individual proprietors. By which means the

29] Debt, atidon Agriculture, Trade, ^c. 173

great increase of money price now rendered necessary, in respect
of all national productions and imported commodities, would no
longer be required, excepting that some caution and guard, as
already suggested, might be considered prudent to prevent any
other than a somewhat gradual return to a standard of low money
prices, in regard to agricultural productions.

The able author of the remarks upon the ** Further Observa-
tions upon the practicabiht\ and expediency of lujuidating the
l*ublic I)ebt,Mc." in the Monthly LniNuiMKiH Krview,
No. XV'III.' insists much u|)on the difficulty of carrying the pro-
posed plan into cftect.

Sensible of the stale of the country, this writer appears justly to
apprehend, that any considerable additionnl import, iii what form
soever it might be attempted, could not be pan! ; and — deii)iiig
that the proposer ol the plan had succeeded in showing that ex-
tensive relief from duties, or from duties and taxes, would precede
any actual levy in respect of the liquidation of the Public Debt —
objects that the plan is impracticable because the contribution to
be required could nut he paid.

It is admitted to be essential to the practicability of the plan,
that extensive rehef from public burthens should precede any actual
levy; and explanation is due, not only on account of the impor-
tance of this point in its bearing upon the (jucstion, but is also due
to the respectable quarter iii which the objection originates.

The dividends on stock are payable on the jth of January, .'^th of
April, jth of July, and lOlh of October, and with the interest on
the Unfunded Debt amount to 32 millions annually.

It will be supposed that the liquidatKMi of the Public Debt,
upon the outline of the plan which has been suggested, had been
adopted as a legislative measure, to take effect from the oth of
January, 1822, and that tlie dividends payable on that day, had
been provided from the ordinary sources of revenue.*

In this case, the demand Unjuture dividends and interest on Un-
funded Debt, would \jry little exceed twenty-seven millions, and
the public would thenceforward be relieved from demand ;

• Now published Cjcarteri-y, and designated the JSew Edinburgh
Revieu.

■ Written in 18«1.

174 Mr. R. Heathfield, on Liquidating the [30

In respect of the public creditor, (his contribution

of 10 per cent.) ;^4,900,00O

Sinking Fund, 5,000,000

15 per cent, upon public appointments, estimated —
together with the decline in the price of stores for
the public service, incident to the reduction of
duties— at 4,000,000

Together j* 13,900,000

The demand of fourteen millions nearly, for the annual public
service, would utterly cease from the 5th of January, 1822, and
consequently, provided the Sinking Fund be efficient to the extent
of five millions, duties, or duties and taxes, to the extent of fourteen
millions, nearly, would be remitted from the same date. If the
Sinking Fund be not efficient to that extent, the remission of duties
or duties and taxes, must be limited accordingly.

The duties or duties and taxes, to be thus remitted, whether
extending to fourteen millions or limited to nine millions, or ex-
lending to some intermediate sum, would clearly precede all de-
mand in respect of the liquidation of the Public Debt.

The demand, in respect of property, would be Three hundred
and seventy-five millions, or, after the rate of Eighteen millions
seven huudrtd and tifty thousand pounds per annum, at the option
of the contributor.

To the further and great extent of this last mentioned sum,
18,750,000/. also, would duties or duties and taxes, in the case
supposed, of the adoption of the plan for the liquidation of the
Public Debt, be remitted, from the same 5th of January, and this
further relief would consequently equally precede all demand in
respect of the liquidation of the Debt. That sum would no
longer be required by the onerous and destructive mode of levy by
duties, and the remission of duties or duties and taxes, to the
extent of these combined sums, approaching to or exceeding
thirty millions per annum, combined with the assurance of further
and final relief from the burthen of the Public Debt, could not
fail to give spirit and vigor and power to the country, and would
well prepare, dispose and enable it to bear the demand of the
contribution to be required in respect of property.

Contributors in respect of property, would divide themselves
into two classes —

Contributors who would pay the principal sum required of them.*

' This class could not fail to be very extensive; all persons possessing
Government Stock and also other property, would canctl stork in the propor-
tion necessary to the relief of that other property from the assessment there-

31] Debt, and on Agriculture, Trade, Sjc, 175

Contributors who would elect to pay the interest of 5 per cent.,
upon the sums assessed upon them, respectively in lieu of paying
the principal sum.

In respect of the first class, the relief of the country would be
full, tinal and effectual; an equal amount of stock would by means
of such contribution be extinguished, and no provision for the
payment of future dividends on such stock, would be required.

Contributors who should elect to pay interest in lieu of paying
the principal sum assessed, give occasion to some care and ar-
rangement, but do not present any difficulty.

They allow the proportion of ihe Pubhc Debt or Stock to be
liquidated by iheni, to remain undischarged, and a sum equal
to the dividend upon such stock must therefore be provided ;
the duties which were imposed for that purpose are remitted
to the country, and to enable the CJovernmcnt to pay such
dividends recourse nuist be had to the interest to be paid by
them. The position does not involve any difficulty : before
the first half-yearly payment of interest could become due, the
contributors would have found more than commensurate relief in
the general remission of duties and the improved state of the
country; and if, as must be supposed, the collection could not bo
made in sufficient time for the payment of tlu halt-yearly dividends,
an issue of Exchequer IJills in anticipation of such receipt, would
enable the Government to act temperately, considerately and feel-
inglv, in the collection of the contribution, and under the circum-
stances supposed, would not be unwelcome to the monied part of
the couununity. The relief would, as matter of course, precede
\\\e demand, and i/j «<A////n/?, any reasonable extension of time for
the payment of the contributions might with facility be accorded,
where required.

It is also objected by the same Reviewijr, notwithstanding
the particular explanation of the Authou upon that part of the
subject, that great inconvenience would arise from the liquidation

on. A landholder having one million value in land, would, in such respect,
be assessed 150,000/. Having also 300,000/. 5 percent, stock, the Gmerument
would frt«ff/-»j,000/. stock, in respect of the nssasnunt on stock, and he would
himself (\n nrelerence to paung 5 per cent, per annum on Uic assessment
of 150,000/. J cancel 150,000/. liiorc of the stock;— hv which means he would,
in great measure, clTccl the deliverance of his land from the destructive cfiect
of the present system of finance, reserving his right to 105,000/. stock,
the amount of which he would receive in the progress of the liquidation
of the public debt.

176 Mr. R. Heathfield, on Liquidating the [32

of the Public Debt, to many descriptions of persons now entitled
to an annuity from the public.

Some care and attention on the part of the annuitant would,
of course, become necessary ; because in lieu of an annuity derived
from the whole of the labor and exertion of the country and guar-
anteed by the State, he would find it necessary to invest his capital
in property, to be let to a tenant upon whom he would have to
depend for rent, or he would himself employ the capital, or he
would advance his capital on the security of a mortgage ; or upon
the supposition of a Bank of Deposit being established, he would
advance it on loan to such Bank ; in either of which cases his si-
tuation would assimilate to his present situation, but with this
material difference — that he would lend, not sink his capital. The
money which he would advance to the Bank of Deposit, the Bank
would again lend, and the borrower, having the use of the capital,
would be justly called upon to pay the interest. The original
lender would be secure under the engagement of the Bank, and
the borrozcer would enjoy the use of the money. The contract
would be of advantagt- to all the parties concerned in it ; and no
disadvantage to the public, in respect of the money price of com-
modities, or in any other respect, could be justly apprehended.
As the liquidation of the Public Debt would not create, or in any
manner add to, capital, but would powerfully tend to create demand
for it, it does not appear reasonable to doubt that security for such
capital as the proprietor might not himself choose to employ,
would be presented in some one of the recognised forms of security,
or that if a new mode or form of security shoulil be required for
the convenience of society, the resource and iuj^enuity of the coun-
try would be found ecjual to such purpose, uithoui, as at present,
bearing down and destroying the interests of the agricultural
orders and lowering and distressing every other active and real in-
terest of this great, and otherwise, most powerful community.

The Review ER also repeats the objection previously urged by
him, that a remainder of 350 millions of debt would continue
after the proposed measure should have been carried into effect.

In repeating this objection the Reviewer appears not to regard
the consideration urged by the Author, that in the event of the
3 per cent, and other lower annuities being paid oflf, not at the
par of 100/., but at a market rate of price, the sum of 3.30 mil-
lions, supposed to remain unliquidated, might be very sensibly
reduced ; that the whole of the property to be remitted to the
United Kingdoni from the British Dependencies, and all British

33] Debt, and on Agriculture, Trade y^c. 177

property to be received from Foreign countries, would be the
separate and additional subject of contribution ; that an increase
of revenue might be expected from the repression of illicit trade ;
and that the decreasing dividends on stock, with a revenue (after
being reduced to a certain low standard) not decreasing, but proba-
bly greatly increasing with the increasing exertions of the country,
would constitute an ejfective Sinking Fund for the tinal subjection
and extinction of the Debt.

These considerations appear to the Author, to be quite sufficient
to allay the apprehension of the continuance of any portion of the
Public Debt, beyond a period of time such as may be considered
rather in the nature of recommendation than objection to the
Author's views, since, although great immediate relief would be
experienced, the advantage of time would be obtained for the
progressive completion of the measure.

APPENDIX E. (p. 14.)

The Eastern Tropical dependencies are strongly distinguished
from the Western Tropical dependencies of the Kmpire.

Hie cultivation of the Western dependencies is linuted by the
prevention of the further importation of laborers from the con-
tinent of Africa, and the laborers who are actually employed, are
slaves of considerable price, and whose maintenance is very ex-
pensive.

The Eastern dependencies arc cultivated, chiefly, hy native
fiee subjects, unlimited in number, of llie most frugal habits, and
who submit to labor at the lowest rate of compensation.

The excellence and gieat value of Tropical productions; the
general demand for, and vast consumption of these productions,
especially in I-^nrope ; the great extent, fertility and variety (tf the
British Tropical Eastern dependencies ; the ingenuity and industry
of the inhabitants, the remarkably cheap rate oj labor, the great
bulk of their productions, and their maritime distance, concur to
render the agriculture of the Asiatic dependencies of tlie British
Empire, the subject of deep interest. It is, at the same time,
unquestionable, that the Britiih West India planter is entitled to
the effective support and protection of the British Government.

He (the West India planter) has embarked great capital insitua-

VOL. XX. Fam. NO. XXXIX. M

178 Mr. R. Heathtield, on Liguidating the [34

tions peculiarly exposed to difficulty and hazard ; his plantation or
farm is a source of consumption, to great extent, of British produce
and nianufaclures ; the property created by his capital, industry
and skill, is of great annual amount ; his employment of British
shipping is extensive ; the busincsis which he transacts with the
British merchant very considerable ; — he administers extensively
to the comforts and satisfactions of life by the description of
produce which he carries to market, and his income is, to great
extent, expended wi'hin the British Isles. The plantations in the
West have been the anxious object of conquest and legislation ;
the property which is embarked iu these plantations may be con-
sidered to have been so en)barked under the peculiar favor and
encouragement of the State, and not only property, but the con-
dition of the numerous laborers employed therein^ depend upon the
well-being of the planter.

But however forcible and even imperative the various considera-
tions which entitle the British Western Tropical planter to effec-
tive support and protection, it may be difficult, if not ?///prffr//crt6/<;,
materially to extend the Foreign market for his productions, at
the rate oj cost at which ihey are uon^ produced. Even the British
markets require high additional duties upon sugar, and other Tro-
pical productions of Foreign and of British Asiatic growth, to assure
the preference to the British Western planter.

Jn the mean time, the cultivation of sugar and coffee in Louisiana,
Cuba, the Brazils, and other I'oreign Tropical comitries, receives
considerable impulse, excites a distressing energy in the Foreign
trade in slaves, and invigorates the Foreign marine, particularly the
marine of the United States of America.

The vast supplies of Tropical produce demanded by the Nor-
thern and Southern divisions of the globe (chiefly by the Northern)
are derived either from the British dependencies in the West, the
British dependencies in the East, or from Foreign territory in the
West or East.

The opposing and rival interests which spring from these several
sources, involve the question of the Trade in Slaves, and eventually,
the question of the Ascendancy of Nations.

In this great contest, the conservation of the Western Tropical
dependencies is the first object of solicitude. It is more impor-
tant to preserve^ than to excite and create.

The care of the W^estern Colonial interests is the natural duty
of the several States, in connexion with the several colonies : not
as an interest in common, but as the separate interest of each

35] Debt, and on Agriculture, Trade, ^'C. 179

State in respect of its own colony. The markets of the respective
countries havino[ colonies, is the only sure resource for the sale of
their productions, and upon the consumption of such markets, the
conservation of ihe \\ estem colonies essentially depciitls.

Beyond this boundary, the more enlarged course of policy
arising from the independence of the United States of America,
the incipient independence of the Southern division of America,
and the facilities of intercourse with the East, do not appear to
admit of protection being extended to the V\ estern colonies.
Except the market of the parent State and its dependencies (if
any) demanding Tropical supplies, the whole world is a market for
the competition of the Eastern and Western planter; and in this con-
test it is evident, that uilh the adianlnne of Europenii ii/slrKclio/i,
superadded to his other advantages, the I'.astern planter must predo-
minate.

The assurance of this result rests chiefly upon the low rate of
Eastern labor, and which is not counterpoised by the greater
maritime distancf of India, from the great market of Europe.
If a pound of cotton-wool cost 3d. or 4d. in India, in Carolina
8//, or [)d. ; the addition of one penny per pound to the cost of
the East India' cotton-wool, on account of the greater distance, will
not prevent a deciiled preference for the Indian production. Upon
tiiis scale, or any approximation to it, the Western planter must
yield the market to the productions of Iiulia, unless the superior
quality of the Western production should compenuatc for the
higher price.

The British Asiatic planter, who occupies the more fruitful, as well
as the more cxteiiMve Tropical countiies of the lOast, can only be
considered to have been in l^iiropean connexion in respect of rice^
cotiou-zcool and suf^ar, since the reduction of the I'^a.st India Com-
pany's chartered rights, in the year 1814. The previous heasy
freight, charges and delay, held in severe check the importation
oi these productions. 'I he progress which has been made since
that period, in the introduction of these commodities into the
market of Europe, already presses with great eflfeci, and plainly
indicates the further consequences of tiiis distressing competition
to the Western planter, if not adequately protected by the parent
State.

The Spanish Western colonies and the Hrazils, have not the
advantage of adequate markets for the sale of their produce in the
European States with which they are, respectively, immediately
connected ; and the Southern members of the United States of

' Supposing a halfpenny per pound freight from Carolina and lid- per
pound from India.

180 Mr. R. Hcathfiehl, on Liquidating the [36

America, notAillistanding the increasing population of these
States, depend, for a market, chiefly upon Foreign countries ; and
are, consequently, exposed to the risk of severe check in their agri-
culture.

I'he French, Dutch, Danish and Swedish Western colonies,
are, probably, sufficiently protected by the markets of their re-
spective countries.

I'he Britiih Western colonies have the advantage of the great
market of the liritish Isles, and the market of the British Northern
dependencies. 'I'hese are close markets, nearlv, for the chief pro-
ductions of these colonies. In addition, the markets of the conti-
nent of Europe demand supplies of British Western colonial pro-
duce ;' but those markets being freely supplied with Tropical
productions, by connected colonies, by the Eastern L^ritish depen-
dencies and by Foreign countries, reliance cannot safely be placed,
by the British Western planter, upon the Emopean continental
markets. It is clear that the British West India planter can
only sajelif and assuredli/ calculate upon the markets of the British
Isles and of the British North American dependencies. The British
Government commands no other markets, and by an act of power
only can the Western planter be protected even in those markets.
Upon a principle of broad and open competition his great and
valuable interests must give way to less expensive systems of
inanagemtnt.

Jlavini^ then these advantages, if the market of consumption do
not ;»(:c(jrd an adequate price to the British Western planter, it is
evident either that the production exceeds the demand, or that the
co.Us of production, as in the instance of British corn, are too heavy
to l)e recovered at market.

Without attempting any nice definition in this respect, it is clear
that the reduction of the revenue system of the United Kingdom
is an object anxiously to be desired by the West India planter.
Upon the substitution of a low for u high revenue system he
depends ; —

For the extension of market by the increase and improved condi-
tion oj the people of the United Kingdom.

For the extension of market hj/ lowering the duties on his pro-
dint ions.

For the reduction of the cost of the extensive supplies for
whi<.h he is compelled to resort to the United Kingdom.

For the reduction of the costs of Navigation, and other charges
of transit.

With these powerful assistances, the British Western Tropical

' Cliiefly sugar refined in Great Britain.

37] Debt, and on Agriculture, Trade, S^c. 181

dependencies, notwithstanding the superior comparative means of
the Eastern planter, would promise to be a continued source of
individual prosptrity and ot national power. Without such assis-
tances, the depression of the British Western Tropical ag:riruhuie
must be expected to add to and to aggravate the national distress
resulting from the state of the agriculture of the British Isles.

The British Western 'i'ropical dependencies being liowcyer
supposed to be thus relieved, and thtir nitt:ie>ts secured by The
only means which appear calculated to relieve and secure them,
namely,

By the extension or increase of British consumption and the re-
duction of charge and expense, by means of the reduction uj
the Britisfi revenue si/steni, ur the tujuidution of the l*ul>lic Debt
of the i nited hin<^doni, and by the special j>roltclion ot the Slate ;
tile agriculture of the British Eastern dependencies, becomes a
distinct and unembarrassed consideration, and unquestionably pre-
sents an object fraught with the most important bearings and
consequences.

The ascendancy of Great Britain depends upon her Murine,
and her Marine depends upon the t)utk of the commodities of
urhich she is the carrier, and the distance to or from winch such
commodities be carried, combining the consideration of the nature
of the climate which she may visit.

'J'he Ivistern parts of Asia are highly fruitful in most of the
hutki/, as well as the more refined proiluclums, wliicli Euroj>e
demands from Tropical countries ; and those parts of Asia are not
only the most distant of' the Tropical countries, but are, to vast
extent, a portion of the British Empire. The bulky Tropical
productions are demanded m quantities so considerable, as to ren-
der their carriage a chief source of maritime power ; and al-
though Tropical climates, generally speaking, are not favorable to
the health of strangers, the etVect of a change of climate upon the
European constitution, has been mitigated by care and professional
skill, and seamen seasoned to such climates by the intercourse of
trade, are the best calculated to defend their country, in the same
climates, in the day of trial.

The chief bulky Tropical productions are saltpetre, pepper, rice,
indigo, cotton-wool, sugar, coftee and tobacco. These commodi-
ties, if wholly derived from the Western division of the globe,
would keep in constant employ sufficient shipping and seamen to
render the nation, which should convey t<j market a large propor-
tion of the whole, a i^rca/ maritime power. The same commodi-
ties, if derived wholly from the Eastern division of the globe,
would keep in as constant employ an increase of shipping and sea-
men, extending to double, or ncaily double, the quantity and number;

182 Mr. R. Heathlield, on Liqu'uiat'mg the [38

and /;/ this vieic, the advantage of the einplo3ftnent is commensurate
with the increase of distar.ce.

Are then Foreign nations to be supplied with these Tropical
Productions from the Western or from the Eastern divisions of the
globe ?

Are they to be siipphed through the medium of the British or
F^eign t^ag ?

Are they ito be supplied by means of the labor of slaves employed
on the soil of other countries, or by means of the labor of native,
free, British subjects, employed on British territory?

Two things being premised, the conclusion is direct and unavoid-
able.

Provided the British Western interests be fully protected, and
provided these conmiodities can be delivered at market of equal
quality and at equal price, the duty and the policy of Great Britain
cannot be mistaken. By supplying and conveying Tropical pro-
ductions from her own doujinions in the East, she obtains for her
own subject, the preference of employment in the production of
the commodity required ; ^\\e prevents a Foreign dejuand for slave
labor, and she displaces one Foreign ship by the substitution of
tivo British ships. Two cargoes of cotton or other produce may
be conveyed to Europe from the West, in the time which would be
required to convey one such cargo from the East.

It has already been endeavoured to be shown, that the British
Western interests admit of full and complete protection, consis-
tently with the extension of the (it mand upon Asia for Tropical
supplies ; — the questions of quality and price only, therefore, remain
be noticed.

Saltpetre, pepper, indigo, rice, cotton-wool, sugar, coffee and to-
bacco, are the cliief of the bulky 'I'ropical productions.

Saltpetre and pepper are not the subject of competition between
the V\Vst and the I'^ast, the first being entirely, and the second al-
most exclusively, dcrivrd from the East. Indigo, which was for-
merly derived, with trilling exception, from Foreign Colonies in the
West, has been cultivated under the fostering hand of the East In-
dia Company, and moie recently by individual enterprise, with
great succe'>s in the British dominions in India, and the Foreign
indigo of the West, is, in consequence, neaily supplanted by the
British indigo of the East. The rice of the East is incomparably
superior in quality to the rice of the West (Carolina) ; the condi-
tion in which the East India rice is brought to market checks its
consumption, but notwithstanding this great impediment to its intro-
duction iDto general use, the consumption of East India rice in Eng-
land, on the continent of Europe, and in tlie West Indies, renders
it a considerable oby ct of commerce, and the better quality (more

39] Debt, and on Agriculture, Trade, S^x. 1 83

nutritious) and lower price, assisted by the improving condition in
which it is brought to market, cannot fuil to obtain for it^ graduall)',
a decided preference over the rice ot the W est. The coltou-ivool
of India, which when burdened with high fieiglit and charges, was
not an object of attention to the merchant or manufacturer, is now
an object of the first importance in the trade and manufactures of
the country. The consumption in England and on the continent
of Europe is vcri/ considerable, and it is, therefore, a production of
great importance ; but the elJect of the large importations and ex-
tensive use of the East India cotton-wool, and of the low rate of
price at which it is imported, upon the price of Foreign cotton-
wool, is a more weighty and important consideration. To these
causes must be ascribed a large proportion of the considerable re-
duction in the price of cotton manufactures, and to the Iotc price at
which these manufactures can be afforded at market, must be as-
cribed, in great part, the extended and increasitig demand for such
manufactures. The ioTC price of the East India cottoii-wool, is a
consideration of great moment to Great Uritai/i, and the consump-
tion, if not bounded by the low pi ice which the I\)reign cotton
planter is compelled to accept for his produce, in consequence of
the price of East India cotton-wool, and the want of attention in
India to the condition in which the East India cotton-wool is sent
to market, must necessarily increase. The sugar of India is be-
come the subject of extensive consumption uii the continent of
Euro|)e, and notwithstanding the higher duty which is imposed
upon it, is the subject of consumption even in England, to an ex-
tent plainly indicating that the demand would be considerable, if
admitted upon equal tcrni» with Hritish N\ est Jiulia sugar. The
coffee of India — (the produce chiefly of the Dutch settlement in
Java) is also a vi-ry extensive subject of trade with Europe, and ex-
cepting tobacco, the bulky Tropical productions of the East, ap-
pear to be forcing their way, in all kinds, into the markets of Eu-
rope, by means of the low price at uhicli they can be aflbrded.
Tobacco is produced in India, very generally, for native consump-
tion, but \\hetlier that production will be added to the evidence of
the resources of India for the supply of the European market, can
only be determined by more experience : that its introduction will
be atten^ptid, under the better commercial principles now in opera-
tion, or expected to be brought into operation, cannot admit of
doubt; and the same advantage of cheap labor may be expected to
produce results simihir to those which are actually experienced in
indigo, rice, cotton-wool and other productions.

The British Eastern dominions, although not the exclusive, are
the principal source or medium of tliesc supplies, and whether
the resources of these domiuioiig be conleinpialed in reference to

184 Mr. R. Heathtitld, on Lu^uidatmg the Deht, S^c. [40

the cheap and abundant lupply to the manufacturer of the unwrought
material, U\c ptrnianent and steady demand for Hriti>h artiticery
and manufactures, the repression of the loreign einploynunt of
slaves, the improvement of the condition ot the Asiatir subject, the
general increase of civilisation, or the incrcaac of the Uritibh ma-
rine, separately, or be contemplated in a connected and combined
view of tlicse important considerations, lUitish India is a subject of
deep and impressive inttrtst to the Merchant and Manufacturer,
tbc Philanthropist, the Philosopher and the Staloman.

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