BOOK I. requires considerable funds, which surpass the ability of inCHAP. VIII. dividuals. There are others that would soon become ruinous, were they not conducted with great prudence, with one regular spirit, and according to well-supported maxims and rules. These branches of trade cannot be indiscriminately carried on by individuals: companies are therefore formed, under the authority of government; and these companies cannot subsist without an exclusive privilege. It is therefore advantageous to the nation to grant them: hence have arisen, in different countries, those powerful companies that carry on commerce with the East. When the subjects of the United Provinces established themselves in the Indies on the ruin of their enemies the Portuguese, individual merchants would not have dared to think of such an arduous enterprise; and the state itself, wholly taken up with the defence of its liberty against the Spaniards, had not the means of attempting it. It is also certain beyond all doubt, that, whenever any individual offers, on condition of obtaining an exclusive privilege, to establish a particular branch of commerce or manufacture which the nation has not the means of carrying on, the sovereign may grant him such privilege. But whenever any branch of commerce may be left open to the whole nation, without producing any inconvenience or being less advantageous to the state, a restriction of that commerce to a few privileged individuals is a violation of the rights of all the other citizens. And even when such a commerce requires considerable expenses to maintain forts, men of war, &c., this being a national affair, the state may defray those expenses, and, as an encouragement to industry, leave the profits of the trade to the merchants. This is sometimes 43 done in England. Ba 2 98. lance of The conductor of a nation ought to take particular care to encourage the commerce that is advantageous to his people, and to suppress or lay restraints upon that which is to their government disadvantage. (42) Gold and silver having become the com trade, and attention of in this respect. (42) This is a questionable policy. It has been laid down by some of the most eminent writers on political economy, that every active interference of the legislature with its subjects, by prohibiting or restraining any particular branch of honest labour, or by encouraging any particular branch at the expense of the others, whether in agriculture or commeree, has uniformly retarded the advances of public opulence, and that the sound policy of a legislator is not to impose restrictions or regulations upon domestic industry, but rather to prevent them from being imposed by the contrivance or folly of others. See 2 Smith, W. N. 118, 125, 201, 204; 3 Id. 183; Malthus, 196; 2 Paley, Mor. Phil. 400, 402; 3 Hume, Hist. 403; Sir J. Child on Trade, 2d part, 46, 81, 86, 132, 154 to 164; and Buchanan's Observations on Smith's W. of N. 2d ed. vol. 4, page 156, 157; Introduc. 3 Lord Sheffield's Strictures on Navigation System, 3 Adolph. 163, and see ante, chap. 6, and 1 Chitty's Commercial Law, 4 to 7. But as regards the encouragement or discouragement of any particular branch of trade, there is another motive for interference which powerfully influences, viz. the increase of revenue, for whenever the luxury or other wish mon standard of the value of all the articles of commerce, the trade that brings into the state a greater quantity of these metals than it carries out, is an advantageous trade; and, on the contrary, that is a ruinous one, which causes more gold and silver to be sent abroad, than it brings home. This is what is called the balance of trade. The ability of those who have the direction of it, consists in making that balance turn in favour of the nation. BOOK I. CHAP. VIII. Of all the measures that a wise government may take with ? 99. Imthis view, we shall only touch here on import duties. When port duties. (43) the conductors of a state, without absolutely forcing trade, are nevertheless desirous of diverting it into other channels, they lay such duties on the merchandises they would discourage as will prevent their consumption. Thus, French wines. are charged with very high duties in England, while the duties on those of Portugal are very moderate,-because England sells few of her productions to France, while she sells large quantities to Portugal. There is nothing in this conduct that is not very wise and extremely just; and France has no reason to complain of it-every nation having an undoubted right to make what conditions she thinks proper, with respect to receiving foreign merchandises, and being even at liberty to refuse taking them at all. CHAP. IX. OF THE CARE OF THE PUBLIC WAYS OF COMMUNICATION, AND THE RIGHT OF TOLL. CHAP. IX. nals, &c. THE utility of highways, bridges, canals, and, in a word, 2 100. Utiof all safe and commodious ways of communication, cannot lity of highbe doubted. They facilitate the trade between one place and ways, caanother, and render the conveyance of merchandise less expensive, as well as more certain and easy. The merchants are enabled to sell at a better price, and to obtain the preference; an attraction is held out to foreigners, whose merchandises are carried through the country, and diffuse wealth. in all the places through which they pass. France and Holland feel the happy consequences of this from daily experience. (44) of the people introduces a foreign, or even a domestic article to greater consumption, a moderate charge upon the same, though in a degree restrictive upon the consumption, will in general be a proper tax. Ibid.-C. (43) This is a very slight allusion to the very important regulation of import and export duties, bounties and draw- BOOK 1. ment in this respect. One of the principal things that ought to employ the atCHAP. IX. tention of the government with respect to the welfare of the 101. Duty public in general, and of trade in particular, must then relate of govern- to the highways, canals, &c., in which nothing ought to be neglected to render them safe and commodious. France is one of those states where this duty to the public is discharged with the greatest attention and magnificence. Numerous [44] patroles everywhere watch over the safety of travellers: magnificent roads, bridges, and canals, facilitate the communication between one province and another:-Lewis XIV. joined the two seas by a work worthy of the Romans. 2 102. Its respect. The whole nation ought, doubtless, to contribute to such rights in this useful undertakings. When therefore the laying out and repairing of highways, bridges, and canals, would be too great a burden on the ordinary revenues of the state, the government may oblige the people to labour at them, or to contribute to the expense. (45) The peasants, in some of the 'provinces of France, have been heard to murmur at the labours imposed upon them for the construction of roads: but experience had no sooner made them sensible of their true interest, than they blessed the authors of the undertaking. 2103. Foundation of the right of toll. (46) The construction and preservation of all these works being attended with great expense, the nation may very justly oblige all those to contribute to them, who receive advantage from their use this is the legitimate origin of the right of toll. It is just that a traveller, and especially a merchant, who receives advantage from a bridge, a canal, or a road, in his own passage, and in the more commodious conveyance of wrote, France greatly advanced in the (45) This position of a government's ply of proper food in return for his labour.-C. (46) As to the right to toll, &c., see Grotius, b. ii. chap. 2, 14, p. 154; Puffendorff, book iii. chap. 3, 6, p. 29, 30; 1 Bla. Com. 287; 1 Chitty's Commercial Law, 103 to 106; 2 Id. 139, 140. It has been observed, that of all the taxes with which the inhabitants of this country are burdened, there is perhaps none so odious as the turnpike duty. On the continent no such interruption in travelling is experienced, and tolls have been abolished on the northern side of the metropolis, London. Lord Byron, in his eulogy upon English roads, humorously ob BOOK I. his merchandise, should help to defray the expense of these useful establishments, by a moderate contribution: and if the CHAP. IX. state thinks proper to exempt the citizens from paying it, she is under no obligation to gratify strangers in this particular. But a law so just in its origin frequently degenerates into 2104. Abuse great abuses. There are countries where no care is taken of this right. of the highways, and where nevertheless considerable tolls (47) are exacted. A lord of a manor, who happens to possess a stripe of land terminating on a river, there establishes a toll, though he is not at a farthing's expense in keeping up the navigation of the river, and rendering it convenient. This is a manifest extortion, and an infringement of the natural rights of mankind. For the division of lands, and their becoming private property, could never deprive any man of the right of passage, when not the least injury is done to the person through whose territory he passes. Every man inherits this right from nature, and cannot justly be forced to purchase it. (47) But the arbitrary or customary law of nations at present tolerates this abuse, while it is not carried to such an excess as to destroy commerce. People do not, however, submit without difficulty, except in the case of those tolls which are established by ancient usage: and the imposition of new ones. is often a source of disputes. The Swiss formerly made war on the Dukes of Milan, on account of some oppressions of this nature. This right of tolls is also further abused, when the passenger is obliged to contribute too much, and what bears no proportion to the expense of preserving these public passages. (48) At present, to avoid all difficulty and oppression, nations settle these points by treaties. (47) This position requires explanation and qualification. As respects a public navigable river, every part of the navigable stream must ever remain free and open from its communication with the sea to its extreme navigable point; but the absolute right to approach it on each side, can only be by public and general ways. Consequently, if an individual have land adjoining a river, he may reasonably refuse permission to any person to go over it to approach the river, and demand any sum he thinks fit for the permission, unless there be a public way over it. Nor have the public any right at common law to tow on the banks of an ancient navigable river; Ball v. Herbert, 3 Term Rep. 253; though it may exist by custom or prescription. Pierce v. Fauconberge, 1 Burr. 292. In the absence of such (48) See n. 47, ante. BOOK I. CHAP. X. ? 105. Es of money. CHAP. X. OF MONEY AND EXCHANGE. (49) IN the first ages, after the introduction of private property, tablishment people exchanged their superfluous commodities and effects for those they wanted. Afterwards gold and silver became the common standard of the value of all things: and to prevent the people from being cheated, the mode was introduced of stamping pieces of gold and silver in the name of the state, with the figure of the prince, or some other impression, as the seal and pledge of their value. This institution is of great use and infinite convenience: it is easy to see how much it facilitates commerce.-Nations or sovereigns cannot therefore bestow too much attention on an affair of such importance. or prince with respect 2106. Duty The impression on the coin becoming the seal of its standof the nation ard and weight, a moment's reflection will convince us that the coinage of money ought not to be left indiscriminately to the coin. free to every individual; for, by that means, frauds would become too common-the coin would soon lose the public confidence; and this would destroy a most useful institution. Hence money is coined by the authority and in the name of the state or prince, who are its surety; they ought, therefore, to have a quantity of it coined sufficient to answer the necessities of the country, and to take care that it be good, that is to say, that its intrinsic value bear a just proportion to its extrinsic or numerary value. It is true, that, in a pressing necessity, the state would have a right to order the citizens to receive the coin at a price superior to its real value: but as foreigners will not receive it at that price, the nation gains nothing by this proceeding; it is only a temporary palliative for the evil, without effecting a radical cure. This excess of value, added in an arbitrary manner to the coin, is a real debt which the sovereign contracts with individuals: and, in strict justice, this crisis of affairs being over, that money ought to be called in at the expense of the state, and paid for in other specie, according to the natural standard: otherwise, this kind of burden, laid on in the hour of necessity, would fall solely on those who received this arbitrary money in payment, which would be unjust. Besides, experience has shown that such a resource is destructive to trade, by destroying the confidence both of foreigners and citizens-raising in proportion the price of every thing— (49) The modern law of nations, and the municipal law of England, as to coin, bullion, and money, will be found collected in 1 Bla. Com. 276 to 280; 4 Id. 84 to 120; 1 Chitty's Commercial Law, 583; 2 Id. 179 to 187, and statutes and decisions there colleeted.-C. |