l benefit to the farmer, because it does
not raise the price of labour; but if it did, it would raise the price
of all things in proportion, and then it would afford no particular
encouragement to agriculture.

It must, however, be conceded, that the tendency of a bounty on the
exportation of any commodity is to lower in a small degree the value of
money. Whatever facilitates exportation, tends to accumulate money in a
country; and on the contrary, whatever impedes exportation, tends to
diminish it. The general effect of taxation, by raising the prices of
the commodities taxed, tends to diminish exportation, and therefore to
check the influx of money; and on the same principle, a bounty
encourages the influx of money. This is more fully explained in the
general observations on taxation.

The injurious effects of the mercantile system have been fully exposed
by Dr. Smith; the whole aim of that system was to raise the price of
commodities, in the home market, by prohibiting foreign competition;
but this system was no more injurious to the agricultural classes than
to any other part of the community. By forcing capital into channels
where it would not otherwise flow, it diminished the whole amount of
commodities produced. The price, though permanently higher, was not
sustained by scarcity, but by difficulty of production; and therefore,
though the sellers of such commodities sold them for a higher price,
they did not sell them, after the requisite quantity of capital was
employed in producing them, at higher profits.[40]

The manufacturers themselves, as consumers, had to pay an additional
price for such commodities, and therefore it cannot be correctly said,
that "the enhancement of price occasioned by both, (corporation laws and
high duties on the importation of foreign commodities,) is every where
finally paid by the landlords, farmers, and labourers of the country."

It is the more necessary, to make this remark, as in the present day the
authority of Adam Smith is quoted by country gentlemen for imposing
similar high duties on the importation of foreign corn. Because the cost
of production, and therefore the prices of various manufactured
commodities, are raised to the consumer by one error in legislation, the
country has been called upon, on the plea of justice, quietly to submit
to fresh exactions. Because we all pay an additional price for our
linen, muslin, and cottons, it is thought just that we should pay als