An Inquiry into the Nature and Causes of the Wealth of Nations by Adam Smith (ebook reader with highlighter txt) ๐
- Author: Adam Smith
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the same sort of parental affection on the one side, and filial
respect on the other, might revive between Great Britain and her
colonies, which used to subsist between those of ancient Greece
and the mother city from which they descended.
In order to render any province advantageous to the empire to
which it belongs, it ought to afford, in time of peace, a revenue
to the public, sufficient not only for defraying the whole
expense of its own peace establishment, but for contributing its
proportion to the support of the general government of the
empire. Every province necessarily contributes, more or less, to
increase the expense of that general government. If any
particular province, therefore, does not contribute its share
towards defraying this expense, an unequal burden must be thrown
upon some other part of the empire. The extraordinary revenue,
too, which every province affords to the public in time of war,
ought, from parity of reason, to bear the same proportion to the
extraordinary revenue of the whole empire, which its ordinary
revenue does in time of peace. That neither the ordinary nor
extraordinary revenue which Great Britain derives from her
colonies, bears this proportion to the whole revenue of the
British empire, will readily be allowed. The monopoly, it has
been supposed, indeed, by increasing the private revenue of the
people of Great Britain, and thereby enabling them to pay greater
taxes, compensates the deficiency of the public revenue of the
colonies. But this monopoly, I have endeavoured to show, though a
very grievous tax upon the colonies, and though it may increase
the revenue of a particular order of men in Great Britain,
diminishes, instead of increasing, that of the great body of the
people, and consequently diminishes, instead of increasing, the
ability of the great body of the people to pay taxes. The men,
too, whose revenue the monopoly increases, constitute a
particular order, which it is both absolutely impossible to tax
beyond the proportion of other orders, and extremely impolitic
even to attempt to tax beyond that proportion, as I shall
endeavour to show in the following book. No particular resource,
therefore, can be drawn from this particular order.
The colonies may be taxed either by their own assemblies, or by
the parliament of Great Britain.
That the colony assemblies can never be so managed as to levy
upon their constituents a public revenue, sufficient, not only to
maintain at all times their own civil and military establishment,
but to pay their proper proportion of the expense of the general
government of the British empire, seems not very probable. It was
a long time before even the parliament of England, though placed
immediately under the eye of the sovereign, could be brought
under such a system of management, or could be rendered
sufficiently liberal in their grants for supporting the civil and
military establishments even of their own country. It was only by
distributing among the particular members of parliament a great
part either of the offices, or of the disposal of the offices
arising from this civil and military establishment, that such a
system of management could be established, even with regard to
the parliament of England. But the distance of the colony
assemblies from the eye of the sovereign, their number, their
dispersed situation, and their various constitutions, would
render it very difficult to manage them in the same manner, even
though the sovereign had the same means of doing it; and those
means are wanting. It would be absolutely impossible to
distribute among all the leading members of all the colony
assemblies such a share, either of the offices, or of the
disposal of the offices, arising from the general government of
the British empire, as to dispose them to give up their
popularity at home, and to tax their constituents for the support
of that general government, of which almost the whole emoluments
were to be divided among people who were strangers to them. The
unavoidable ignorance of administration, besides, concerning the
relative importance of the different members of those different
assemblies, the offences which must frequently be given, the
blunders which must constantly be committed, in attempting to
manage them in this manner, seems to render such a system of
management altogether impracticable with regard to them.
The colony assemblies, besides, cannot be supposed the proper
judges of what is necessary for the defence and support of the
whole empire. The care of that defence and support is not
entrusted to them. It is not their business, and they have no
regular means of information concerning it. The assembly of a
province, like the vestry of a parish, may judge very properly
concerning the affairs of its own particular district, but can
have no proper means of judging concerning those of the whole
empire. It cannot even judge properly concerning the proportion
which its own province bears to the whole empire, or concerning
the relative degree of its wealth and importance, compared with
the other provinces; because those other provinces are not under
the inspection and superintendency of the assembly of a
particular province. What is necessary for the defence and
support of the whole empire, and in what proportion each part
ought to contribute, can be judged of only by that assembly which
inspects and superintends the affairs of the whole empire.
It has been proposed, accordingly, that the colonies should be
taxed by requisition, the parliament of Great Britain determining
the sum which each colony ought to pay, and the provincial
assembly assessing and levying it in the way that suited best the
circumstances of the province. What concerned the whole empire
would in this way be determined by the assembly which inspects
and superintends the affairs of the whole empire ; and the
provincial affairs of each colony might still be regulated by its
own assembly. Though the colonies should, in this case, have no
representatives in the British parliament, yet, if we may judge
by experience, there is no probability that the parliamentary
requisition would be unreasonable. The parliament of England has
not, upon any occasion, shewn the smallest disposition to
overburden those parts of the empire which are not represented in
parliament. The islands of Guernsey and Jersey, without any means
of resisting the authority of parliament, are more lightly taxed
than any part of Great Britain. Parliament, in attempting to
exercise its supposed right, whether well or ill grounded, of
taxing the colonies, has never hitherto demanded of them anything
which even approached to a just proportion to what was paid by
their fellow subjects at home. If the contribution of the
colonies, besides, was to rise or fall in proportion to the rise
or fall of the land-tax, parliament could not tax them without
taxing, at the same time, its own constituents, and the colonies
might, in this case, be considered as virtually represented in
parliament.
Examples are not wanting of empires in which all the different
provinces are not taxed, if I may be allowed the expression, in
one mass ; but in which the sovereign regulates the sum which
each province ought to pay, and in some provinces assesses and
levies it as he thinks proper ; while in others he leaves it to
be assessed and levied as the respective states of each province
shall determine. In some provinces of France, the king not only
imposes what taxes he thinks proper, but assesses and levies them
in the way he thinks proper. From others he demands a certain
sum, but leaves it to the states of each province to assess and
levy that sum as they think proper. According to the scheme of
taxing by requisition, the parliament of Great Britain would
stand nearly in the same situation towards the colony assemblies,
as the king of France does towards the states of those provinces
which still enjoy the privilege of having states of their own,
the provinces of France which are supposed to be the best
governed.
But though, according to this scheme, the colonies could have no
just reason to fear that their share of the public burdens should
ever exceed the proper proportion to that of their
fellow-citizens at home, Great Britain might have just reason to
fear that it never would amount to that proper proportion. The
parliament of Great Britain has not, for some time past, had the
same established authority in the colonies, which the French king
has in those provinces of France which still enjoy the privilege
of having states of their own. The colony assemblies, if they
were not very favourably disposed (and unless more skilfully
managed than they ever have been hitherto, they are not very
likely to be so), might still find many pretences for evading or
rejecting the most reasonable requisitions of parliament. A
French war breaks out, we shall suppose; ten millions must
immediately be raised, in order to defend the seat of the empire.
This sum must be borrowed upon the credit of some parliamentary
fund mortgaged for paying the interest. Part of this fund
parliament proposes to raise by a tax to be levied in Great
Britain ; and part of it by a requisition to all the different
colony assemblies of America and the West Indies. Would people
readily advance their money upon the credit of a fund which
partly depended upon the good humour of all those assemblies, far
distant from the seat of the war, and sometimes, perhaps,
thinking themselves not much concerned in the event of it ? Upon
such a fund, no more money would probably be advanced than what
the tax to be levied in Great Britain might be supposed to answer
for. The whole burden of the debt contracted on account of the
war would in this manner fall, as it always has done hitherto,
upon Great Britain; upon a part of the empire, and not upon the
whole empire. Great Britain is, perhaps, since the world began,
the only state which, as it has extended its empire, has only
increased its expense, without once augmenting its resources.
Other states have generally disburdened themselves, upon their
subject and subordinate provinces, of the most considerable part
of the expense of defending the empire. Great Britain has
hitherto suffered her subject and subordinate provinces to
disburden themselves upon her of almost this whole expense. In
order to put Great Britain upon a footing of equality with her
own colonies, which the law has hitherto supposed to be subject
and subordinate, it seems necessary, upon the scheme of taxing
them by parliamentary requisition, that parliament should have
some means of rendering its requisitions immediately effectual,
in case the colony assemblies should attempt to evade or reject
them; and what those means are, it is not very easy to conceive,
and it has not yet been explained.
Should the parliament of Great Britain, at the same time, be ever
fully established in the right of taxing the colonies, even
independent of the consent of their own assemblies, the
importance of those assemblies would, from that moment, be at an
end, and with it, that of all the leading men of British America.
Men desire to have some share in the management of public
affairs, chiefly on account of the importance which it gives
them. Upon the power which the greater part of the leading men,
the natural aristocracy of every country, have of preserving or
defending their respective importance, depends the stability and
duration of every system of free government. In the attacks which
those leading men are continually making upon the importance of
one another, and in the defence of their own, consists the whole
play of domestic faction and ambition. The leading men of
America, like those of all other countries, desire to preserve
their own importance. They feel, or imagine, that if their
assemblies, which they are
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