Superphysics Superphysics
Chapter 8c

Ban On The Export Of Raw Materials

by Adam Smith Icon
5 minutes  • 908 words

37 The exportation of raw materials is subjected to high duties, wherever they are not banned.

38 By the 8th George 1st chapter 15, all British exports were rendered duty-free except for=

  • alum, lead, lead ore, tin, coppers, litharge of lead,
  • tanned leather,
  • coals,
  • wool cards, white woollen cloths, coney hair or wool, hares’ wool, hair of all sorts,
  • zinc,
  • all kinds of skins,
  • glue,
  • horses.

Except for horses, all these are either:

  • raw materials of manufacture,
  • incomplete manufactures, as materials for further manufacture,
  • instruments of trade.

39 This statute subjects them to all the old duties, the old subsidy, and 1% outwards.

The same statute exempted many foreign drugs for dyers’ use from all import duties.

However, each of them is afterwards subjected to an export duty. Our dyers thought it for their interest to=

  • encourage the importation of those drugs by an exemption from all import duties,
  • add a small discouragement on their exportation.

They were probably disappointed in their goal. The drug importers prevented importing more than what was needed. The home market became always scantily supplied. Those drugs were likely to be dearer.

40 That statute enumerated gum senega or gum arabic as among the dyeing drugs.

They could be imported duty-free. They were subjected to a small poundage export duty. It was 3 pence the hundredweight on re-exportation.

At that time, France had an exclusive trade to it.

Senegal was the country most productive of those drugs. The British market could not be easily supplied by the importation from Senegal.

By the 25th of George 2nd, gum senega was allowed to be imported from any part of Europe, contrary to the Act of Navigation.

  • The law did not mean to encourage this trade.

Contrary to the principles of the English mercantile policy, it imposed a duty of 120 pence the hundredweight on such importation.

None of this duty could be drawn back on exportation.

The successful French and Indian War, which began in 1755, gave Great Britain the same exclusive trade to the countries France had before. Our manufacturers availed of this advantage as soon as peace was made.

They tried to establish a monopoly against gum growers and importers. By the 5th George 3rd chap. 37, gum senega exportation from British dominions in Africa was confined to Great Britain.

It was subjected to the same regulations as the enumerated commodities of the British colonies in America and the West Indies. It was subjected to:

  • a small import duty of 6 pence the hundredweight, and
  • an enormous duty on re-exportation of 360 pence the hundredweight.

Our manufacturers intended that the produce of those countries should be imported into Great Britain so that=

  • they could buy it at their own price, and
  • none of it should be exported again.

They were disappointed in their goal.

This enormous duty caused huge export smuggling from Great Britain and Africa probably to all European manufacturing countries, especially Holland.

By the 14th George 3rd chapter 10. this duty on exportation was reduced to 60 pence the hundredweight.

41 The old subsidy [duty] was levied according to the book of rates.

The old subsidy for beaver skins was estimated at 80 pence a piece. Half of the old subsidy amounted only to 2 pence. Before 1722, different subsidies and imposts were laid on their importation.

They amounted to 1/5 of 80 pence or 16-pence on each skin. All of the subsidies, except the old subsidy, were drawn back on exportation. This duty was thought too high.

In 1722, the export duty was reduced to 30 pence a piece.

It reduced the import duty to 6 pence.

Only half of this was drawn back on exportation.

The French and Indian War put Canada under Great Britain.

Canada was most productive of beaver. Beaver skins were among the enumerated commodities. Their exportation from America was confined to Great Britain. Our manufacturers soon took advantage of this.

In 1764, the import duty on beaver skins was reduced to 1 penny. But the export duty was raised to 7 pence each skin, without any drawback of the import duty.

By the same law, a export duty of 18 pence the pound was imposed on beaver wool or combs with no change in their import duty. The import duty then was between 4 pence and 5 pence the piece.

42 Coals may be considered both as a material of manufacture and as an instrument of trade.

Heavy duties were imposed on coal exportation. At present (1783) it is more than 60 pence the ton, or more than 180 pence the chaldron, Newcastle measure. This is more than the original value of coal at the coal pit or even at the port for exportation.

43 The exportation of the instruments of trade is commonly restrained by absolute prohibitions.

By the 7th and 8th of William 3rd chapter 20 section 8, the exportation of frames or engines for knitting gloves or stockings is prohibited under the penalty of:

  • The forfeiture of such frames or engines
  • £40, with half to the king and the other half to the person who shall inform about it.

By the 14th George 3rd chapter 71, the exportation of any utensils used in the cotton, linen, woollen, and silk manufactures is prohibited under the penalty of:

  • the forfeiture of such utensils,
  • £200 to be paid by the offender,
  • £200 to be paid by the master of the ship which loads such utensils.

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