Sundries, Hyson, Souchong, &c., say 50 per cent. less (to avoid too great minuteness) than the Company. Company's prices Deduct 50 per cent. 4s. per lb. Can be saved 2s. per lb. Which, on 1,000,000, is 100,000 1,950,000 As this comparison is founded upon the price at which Free Traders can lay down in England with the Company's sale prices, it is evident that no allowance has been made to the Free Trader for profit; therefore, for that head, deduct 20 per cent. Total Saving... 390,000 £1,560,000 This, then, appears to be something about the saving which would be effected for the public, or which would enable them to purchase the increased consumption that we have shown would take place, with about the same purchase-money for which they can now only get 25,000,000 lbs. Thus : 18,000,000 at 17d. Landed in England, Į 3,000,000 at 8d. 3,000,000 at 16d. 100,000 200,000 Now, if 25,000,000 lbs. can be sold at 2,010,000l., 44,051,000 lbs., which is the probable rate of increase, drawn from the augmented consumption, previous to the year 1800,-would cost 3,729,000l., or, (as applied to the American rate,) gives 4,993,000l.: from all which, it is clear that the first augmented consumption of 44,000,000 lbs. might have been purchased with less money than is now actually paid for the limited supply at the monopoly prices. If from this we turn to the revenue, we shall readily perceive what would be the result, if the duty were placed on the same footing as it is in Holland and America, and made specific instead of ad valorem. For instance, suppose the duty had been so arranged upon the different kinds of teas, as to be equal to 100 per cent. ad valorem, according to the example of those nations, we should then have had a revenue increasing in a ratio with the increasing consumption. Transferring the rate of increase previous to 1800, to the subsequent increase as already pointed out, we should have had the revenue, in 1825, 7,100,000l., and, at the American rate of increase, 9,996,000l. per annum. These calculations are founded upon the supposition, that the sale of the Company's teas amounts to 4,000,000l. annually, and the revenue arising from it to the same sum, which, though not precisely accurate, is sufficiently correct to establish the general position, and affords the advantage of round numbers to those who are not acquainted with the minutiae of the question. But suppose that the Government, from a desire to ameliorate the condition of the people, or from an abundant revenue, had been determined not to change the method of levying the duties, but to continue the ad valorem duty, and let the revenue rise and fall according to the price of tea; and suppose it had been continued at 100 per cent. on the sale value, under the introduction of a Free Trade-what would have been the result upon 25,000,000 lbs. at the probable augmentation, and at the American rate of augmentation. We will first put down for what the 25,000,000 lbs. may be landand, allowing a liberal profit and landing-charges of 20 to 25 per cent., we will suppose that to be the sale price under a Free Trade, and then add the ad valorem duty to it of 100 per cent. Congo, landed at 17d. profit, and 4d. sale value 21d. 21 42d. is 2,650,000 18,000,000 lbs., purchased at.. Twankay, landed at 16d. profit, &c., and 4d. sale value 20d. Duty, ad valorem, &c. &c... 3,000,000 lbs., purchased at 20 40d. is 500,000 Sundries, landed at 28. profit, &c., and 6d. sale value 2s. 6d. Duty, ad valorem, &c... 1,000,000 lbs., purchased at 2s. 6d. 58. Od. is 250,000 25,000,000 lbs., costing, with profit, &c., as above £3,650,000 To obtain the result of the supposed augmentation of 1825, had a Free Trade been established in 1800, it will only be necessary to apply the above calculation to the supposed increase, as stated in page 6; if, then, 25,000,000lbs. give 3,650,000l., 44,500,000lbs. will give 6,482,000l.; and the same rule applied to the American rate of increase, will give 9,600,000l. From these statements we collect the progressive state of a Free Trade, and of the revenue, from its first introduction, without any alteration in the mode of levying the duties: 25,000,000 lbs {Duty, ad valorem. Soldati valore... 1,825,000. 44,500,000..{ Sold at Duty, ad valorem.. 62,000,000.. {Duty. ad valorem.. 1,825,000 £3,650,000 3,241,000 3,241,000} 6,482,000 4,800,000 4,800,000 9,600,000 The revenue, in the second case, nearly equalling what we have at present, and taking a much smaller sum from the body of the people, and giving them a supply of 44,000,000 lbs. in place of 25,000,000 lbs. ; and in the third, yielding a revenue above that of the present day, and giving the people the quantity of 62,000,000 lbs. for only 8001. sterling more than what they now pay for 25,000,000 lbs. We have before stated that a fixed duty on the kinds of tea, arranged so as to yield the same as 100 per cent. on the present prices, would have given, when applied to the supposed increase, 7,100,000l. on a consumption of 44,500,000 lbs. and 9,966,300l. on a consumption of 62,000,000 lbs. Comparing this increase of revenue with Free Trade prices, we shall have the following result: 44,500,000 lbs. with fair mercantile profit, &c., sold for.. £3,241,000 Duty upon principles as above..... 7,100,000 £10,341,000 Without pursuing the question any further, we here arrive at a point worth resting upon; for, without taking a larger sum from the population of this country than at present, we shall have a supply of 14,500,000 lbs. in place of 25,000,000 lbs., and the revenue increased from 4,000,000l. to 7,000,000l.; for we consider that, if the out-ports had been thrown open at the same time, the supply would have come infinitely cheaper to the hand of the consumer, and approximated the state of things to the general conclusions we have drawn. It must be borne in mind that it is to general results that we have directed our observations, and that, when we call the average consumption 25,000,000 lbs., the revenue 4,000,000l., the sale price of tea 4,000,000l., the duty 100 per cent., instead of 95 per cent., we must be understood as adopting these merely as round numbers. We have taken the comparison of revenue at the extreme points : first, supposing that the Free Trade had been introduced with a revenue continuing the same, whatever might have been the fluctuations of price, and augmenting with the increased consumption, subject to no diminution; and next, supposing the Free Trade introduced under the present ad valorem duties, which would fall with the fall of prices, and could only augment with the augmentation of consumption. The combinations between these two extremes are various, but tedious for the general reader. We have shown one case, wherein, without oppressing the people, we should have an augmented revenue of 3,000,000l., and at the same time an increased supply of 17,500,000 lbs. to increase the comfort of the people of this country, applying our conclusions from the the period of 1800 to 1825; (and it is evident that those reasonings are as applicable to the present moment as to the period to which they are applied ;) and, if to these conclusions be added the evils of the system of Monopoly, pointed out in the first branch, a mass of abuses to be overcome, or advantages to be gained, will be presented to the mind, calling loudly for legislative interference, and which nothing but a Free Commerce seems capable of effecting. But be it, above all, remembered, that we have not said one word on the increased population, wealth, and resources of this country since 1800; when these are added, it is clear that more ample results than those we have stated must take place. We do not anticipate any serious objections to the inferences that we have drawn of the probable rapid increase of the consumption of tea, as well as an increase of revenue, under a Free Trade; otherwise, we might adduce a still more conclusive instance of rapid increase in the consumption of tea where freely introduced, by a reference to our settlement of New South Wales. But it is unnecessary to surcharge the subject with additional proof: if the facts we have stated do not produce conviction, nor rouse inquiry, in the manufacturing and mercantile classes, the case is hopeless; yet we will adduce one proof more, and specify the American import of British goods into China by American ships, particularly since we have alleged the serious charge, that the Monopoly have suffered British exports to retrograde, and permitted other nations to supply the deficiency. American Imports of British Goods into China. 10 On the Commercial Relations of Great Britain with China. This is the supply that has taken place to the Chinese market by one nation among others. We shall now conclude with a summary of the general results likely to take place in consequence of the establishment of a Free Trade. First. It would put the British commerce upon the same liberal basis throughout the empire. Secondly. It would do away with the Company's Monopoly, although not with their trade, unless they could not pursue the same economical terms. it upon Thirdly. It would give the people of Great Britain a necessary and simple article of food free from enormous monopoly prices, and afford, in consequence, important relief to the middling and lower classes. Fourthly. It would disseminate more extensively the use of tea, which from its un-inebriating character is desirable, and would diminish the use of strong liquors. Fifthly. It would increase the revenue (as an increased consumption would follow a reduced price) by a slight modification of the duty. Sixthly. It would open to British merchants a trade which has retrograded in the hands of the Company, and has been forced into the hands of foreigners. Seventhly. It would apply a remedy to the following evils: 1. That the capital employed, and the amount of our manufactures exported, are, probably, inadequate to the demand. 2. That the Company makes an enormous import profit, while no corresponding export advantage is gained: the prime cost of their imports being upwards of 2,000,000l., while that of their exports is below 700,000l. 3. That the superior activity of foreigners over the Company has enabled them to supply the Chinese with a large portion of British manufactures, and to introduce many others unknown to their trade, from which the British public have been excluded. 4. That, from their expensive rates of freight, and high charges of shipping, the Company's trade has been pursued on most prodigal terms, the extreme being about 250 per cent. more than that at which a Free Trade would carry it on. 5. That from the high monopoly prices of tea, our colonies are forced to adopt an illicit trade. |