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Leader (1850-1860), 27th November 1858, Edition 2 of 2, Page 23, TRADE OF TEN MONTHS. INDIRECT TAXATION. ...

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      No. 463, November 27,1858.] The 1eabeb. ...

      No . 463 , November 27 , 1858 . ] THE 1 EABEB . 129 B

      C O Mm Eec!Al

      C O MM EE CIAL .

      Anti-Feee-Tifcade Thoughts . And Xaws. T...

      ANTI-FEEE-TifcADE THOUGHTS . AND XAWS . Tjie Emperor of the French , who has recently been much praised for his sagacity by a Protectionist shipowner , has ordered all the bakers , in towns where the trade of a baker is regulated by ordinance , to lay in and keep by them a stock of flour or wheat equal to their consumption in three months . The population of the towns embraced hy this decree is estimated at upwards of 7 , 000 , 000 , and the money which will ' be required by the bakers to buy tlie three months' stock at 2 , 500 , 000 / .

      Whether the bake rs have the money or not , they must buy this stock , and the Minister of Agriculture and Commerce kindly informs them that it will be a profitable speculation to borrow , and insinuates that capitalists will be wanting in patriotism who do not help the bakers and share with them-the advantages to be derived from keeping so much grain or Hour on hand . Eired with the noble ambition of always keeping a ^ vast population provided with bread , the EmpeVor or his Minister , or the two together , propose to extend this scheme to all the chief towns of departments and arrondissements not included in the present

      ordinance , and so secure a permanent supply for three months in the possession of every baker in the empire . Adam Smith , about eighty years ago , demonstrated that no statesman was so unfit to direct the people how to employ their capital and labour a 3 he who had the presumption to think he could do it ; and now we have 'the Emperor and his Minister acting as if this truth had never been recognised . To suppose they can set at naught the laws' which regulate the industry of society is like supposing they can despise gravity or see without light . A deficiency of capital is characteristic cf France , and the sagacious Emperor and his wise Minister intend that some three or four millions

      shall be misapplied under their special control . They dictate how it is to be employed . At every period of the year , just before an abundant harvest , just after a very scanty one , whatever may be the conr ditiou of the new wheat or of the old , the poor bakers must have a three months' stock on their hands , and must be placed , by the compulsion to have it , at the mercy of the growers and importers . They must lose by the scheme , which is generally received with contempt and mockery by all reflecting persons .

      By looking at oursolves by the light of their conduct it may be of some advantage to us . The Times has justly held up this emanation of imperial sagacity to the reprobation of its readers , aiid John Dull is no doubt aolighted to find his neighbour so open to ridicule . If he look sharp at home he may find some of his own trade laws not much superior to those of the Emperor of the French . Our contemporary for many months has made himself conspicuous by advocating in leaders , and still more elaborately in his City intelligence , the Act of 1844 , and nearly every word Which ho says against the Emperor ' s decree as to bakers may be applied to this wonderful piece of parliamentary wisdom . The Timea says :-

      —Is the keeping of a reserve of corn and flour by every baker in one hundred and sixty towns of France , equal to throe months' consumption for liis interest as a private trader , or is it not ? If it be , such a decree is a mere superfluity , just as much so as If tho Emperor had commanded the bakers to buy their flour as cheap and , sell tuoir breud as dear as possibly . In such a point of view it would bo simply ridiculous . But if , as wo apprehend , such a decree nxuot be injurious to very considerable numbers among the bilkers , then , wo usk , on what principle is a articular

      p class selected to boar a burden which is imposed on flomo notion , however erroneous , of obtaining « general benefit for all ? What havo tho bakors done that Government should insist upon taking thoir trade out of their own hands , and forcing them by arbitrary decrees to carry it on on principles contrary to thoir own private interest ? . # Change the word baker in the paragraph for banker , and see how it will illustrate the Act of 184 i 4 . Is the keeping of a reserve of gold by every wanker for his interoBt as a private trade or is it not P If it bo , the Aot of 184 . 4 , whioh compels him to Keep a sum of gold proportionate to the nodes , he wsuos xs a more superfluity . If such , a regulation

      must be injurious to a considerable number of bankers , then we ask on what principle a particular class is selected to bear a burden—the expense of holding so much gold—imposed on some notion , however erroneous , of obtaining a general benefit for all ? To the Bauks of Scotland alone—the Act of 1 S 45 which applies to Scotland the Act of 1844—this regulation costs at least 40 , 000 / . a year . Their average circulation is about 4 , 200 , 000 / . ; prudent banking requires them to keep bullion , to the amount of one-third of the sum , or 1 , 400 , 000 / . Tiiey mig ht with safety keep even less . The law , however , compels them to keep about 2 , 400 , 000 / ., or 1 , 000 , 000 / . more than is necessary . At 4 per ceut ., this gives 40 , 000 / . per annum -which the law wastes , and the cost of which falls eventually on the community or the customers of the banks . As

      the circulation of the English and Irish banks together is about 1 , 000 , 000 / ., the total certain loss to the commuuity by the regulations interfering with the business of bankers is at least 100 , 000 / . a year , a sum far greater , we believe , than will be lost to the bankers and people of JTranee by the silly decree of the Emperor . "What have the bankers done that Government should insist on taking their trade out of their hands , and force them to carry it on on principles contrary to their own private interest ? "The decree , " our contemporary continues , " obviously imposes a burden on the bakers ( bankers ) , it tends to diminish or annihilate their profits ; they must recompense themselves by raising the price . The direct effect of Government interference will therefore be to

      increase the price of bread ( of money or credit ) to the consumer . " " Yet more , " says the Times / "there are in every civilised country a number of capitalists ready to buy up corn or other articles which happen to be cheap , and hold out a reasonable hope on a resale of obtaining a fair profit . Why should a French Government enter the lists against this class of persons ? " In our country there are many capitalists of good character read } ' to become bankers were they allowed to manage their own . business as they thought fit , and why should the Government enter the lists against this class of persons , give a monopoly to the existing issuers of notes , and prevent the extension of a most useful business ? The decree about the bakers in

      who adopt it , the Times can encourage the folly of opposing free trade by declaring that " people have a strong pecuniary interest in attacking 1 free trade . " They may erroneously suppose they have such an interest , but they never have y free trade is the law of nature ,-like the diffusion , of air and sunlight , and is full of health , gladness strength , and rejoicing for all . Defective thoughts and inconsistent writing flow from a want of faith in principles , and encourage inconsistent claims in shipowners , and others . They excite , too , the insertion of futile clauses in Acts of Parliament . In the very Act which repealed the old navigation laws , because these laws were injurious to the nation , a clause is inserted which implies , contrary to the whole tenor of the Act . that restriction

      is beneficial , and encourages the shipowners to demand that restriction be reimposed . They are taught by the law , in the teeth of all modern experience , that they can be enriched and benefited by procuring restrictions on their fellowcitizens becajise the igtiorant American and French Governments impose restrictions on their people . While we English are full of exultation at the great success which has followed our little improvement in commercial legislation , few or none of us are duly impressed with the great truth that all the benefits have flowed , not from any special

      law-making , but from the freedom which the abolition of restrictions , similar to those still imposed on banking , permitted to come into activity . Few , or none of us are duly impressed ¦ wi th the fact that this freedom is alike beneficial to each and all , is beneficial in its own nature , and confers only benefits on those who adopt it . The laissezjitire which our contemporary now advocates is not limited to bakers , it is true of every art , of every business , and every science , and to comprehend it in all its magnitude might fill some of its nominal advocates -with grief and despair .

      France is absurd , and we rejoice- to see the limes lash , the scandalous interference -with the business of individuals , but nearly every word it says against the Emperor ' s decree is strictly applicable , mutatis mntandi , to our own similar law concerning bankers and banking . As long as that scandalous infraction of free trade , passed by nominal free traders , remains cm our statute book , it becomes every Englishman , whenever an act or decree is passed abroad whioh resembles it in principle or detail , to hang his head with shame that the sad example of his popular legislature , while professing free trade , should encourage and justify similar interference with freedom by the foolish despots of the Continent .

      Bold as our contemporary is in exposing the antifrco trade follies of tho Emperor and liis Ministers , he is not wholly exempt from such follies in his own reasoning . One of the unexpected results to the protectionists of free trade is great pecuniary advantages to the farmers , shipowners , llock masters , silk manufacturers , & c , who most dreaded its eilects . Truly estimating its spirit and effeots one day , the Times says , in reference to our repeal of the navigation laws : — What we have obtained is a really fair nnd free trade , tho right for our merchants and passengers to obtain the conveyance of their goods or themselves by sea on tho very cheapest tormsVhlch tho market of tho world can afford . What tho Americans have retained ia the

      power of limiting tho competition of tho carriers by soa from one part of their coast to tho other , and , consequently , of enhancing tho freight and raising the price of all conaumublo articles against themselves . Tho great advantage tho Americans have sqcured ia tho power to tax themselves for tho benefit of their shipping interest ; and if tliere is anything unfair in this proceeding wo must say that tho unfairness is rather to tho American consumer than to tho English shipowner . Yet in spite , of those facts and this reasoning , whioli show that frco trade is beneilcial to all

      Trade Of Ten Months. Indirect Taxation. ...

      TRADE OF TEN MONTHS . INDIRECT TAXATION . In the usual place the reader will find our complete abstract of the trade of ten months for the two years 1 S 57-1 S 5 S . From it he will learn the total quantities of all the articles imported from foreign countries and our colonies and re-exported , the value of all our manufactures and native productions exported , and the total quantity of shipping employed in our foreign trade , with the ports from and to which the vessels sailed . He will see also the total quantity of tonnage engaged in our coastingtrade , and on all these points may compare the trade of 1858 with that of 1857 . He will see the total quantity of bullion imported and exported in the present year , but can make no comparison in this case with the previous year , because no such , returns were made in 1857 . One noticeable feature in the table is that the imports of silver have this year increased , as well as the imports of gold , above

      the exports , and the total imports of both above the exports is no less than 11 , 145 , 8 * 0 / ., which compels an increase of almost double this amount ia tho quantity of legal money issued in obedience to our very absura monetary laws . A close inspection of the whole tables in detail as published enables us to lay some additional items of information before our readers .

      The quantities of the articles imported in the month , with the exception of animals , cocoa , metals , provisions , sugar , molasses , tea , are very generally considerably less than tho quantities imported in the corresponding month of 1857 , and the shipping entered inwards in the month ia 817 , 520 tons , against 855 . 6 S 0 tons . Again , tho value of the articles exported . with tlie quantities , generally dooreased , was 1 O , 26 S , 7 U 7 / ., against 10 , 985 , 789 / . in the corresponding mouth of 1 S 5 7 ; and tho touuago olenredwas 78 S , 7 O 0 , against 949 , 019 . buoli faqts servo in part to explain tho complaints oi our shipowners of decreased employment . Tho trade in Ootobor , 1858 , and consequently tho shipping . required / was less , both import and export , ^" '" O ^ V nh A and wo may ndd than in October , 1850 . Sucl a declension , the consequence of trade artificially stimulated , nud of waroooumug uiconj unction witli

  • Citation
    • Leader (1850-1860), Nov. 27, 1858, page 23, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/cld_27111858/page/23/