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whereas　formerly　they　amounted　only　to　300；000　l。'（10*）



　　　　All　the　merchants　and　political　economists；　as　well　as　all　the



statesmen　of　England；　have　ever　since　eulogised　this　treaty　as　the



masterpiece　of　English　commercial　policy。　Anderson　himself；　who　had



a　clear　insight　enough　into　all　matters　affecting　English



commercial　policy　and　who　in　his　way　always　treats　of　them　with



great　candour　call's　it　'an　extremely　fair　and　advantageous



treaty；'　nor　could　he　forbear　the　na飗e　exclamation；　'May　it　endure



for　ever　and　ever！'（11*）



　　　　For　Adam　Smith　alone　it　was　reserved　to　set　up　a　theory



directly　opposed　to　this　unanimous　verdict；　and　to　maintain　that



the　Methuen　Treaty　had　in　no　respect　proved　a　special　boon　to



British　commerce。　Now；　if　anything　will　suffice　to　show　the　blind



reverence　with　which　public　opinion　has　accepted　the　（partly　very



paradoxical）　views　of　this　celebrated　man；　surely　it　is　the　fact



that　the　particular　opinion　above　mentioned　has　hitherto　been　left



unrefuted。



　　　　In　the　sixth　chapter　of　his　fourth　book　Adam　Smith　says；　that



inasmuch　as　under　the　Methuen　Treaty　the　wines　of　Portugal　were



admitted　upon　paying　only　two…thirds　of　the　duty　which　was　paid　on



those　of　other　nations；　a　decided　advantage　was　conceded　to　the



Portuguese；　whereas　the　English；　being　bound　to　pay　quite　as　high



a　duty　in　Portugal　on　their　exports　of　cloth　as　any　other　nation；



had；　therefore；　no　special　privilege　granted　to　them　by　the



Portuguese。　But　had　not　the　Portuguese　been　previously　importing　a



large　proportion　of　the　foreign　goods　which　they　required　from



France；　Holland；　Germany；　and　Belgium？　Did　not　the　English



thenceforth　exclusively　command　the　Portuguese　market　for　a



manufactured　product；　the　raw　material　for　which　they　possessed　in



their　own　country？　Had　they　not　discovered　a　method　of　reducing　the



Portuguese　customs　duty　by　one…half？　Did　not　the　course　of　exchange



give　the　English　consumer　of　Portuguese　wines　a　profit　of　fifteen



per　cent？　Did　not　the　consumption　of　French　and　German　wines　in



England　almost　entirely　cease？　Did　not　the　Portuguese　gold　and



silver　supply　the　English　with　the　means　of　bringing　vast



quantities　of　goods　from　India　and　of　deluging　the　continent　of



Europe　with　them？　Were　not　the　Portuguese　cloth　manufactories



totally　ruined；　to　the　advantage　of　the　English？　Did　not　all　the



Portuguese　colonies；　especially　the　rich　one　of　Brazil；　by　this



means　become　practically　English　colonies？　Certainly　this　treaty



conferred　a　privilege　upon　Portugal；　but　only　in　name；　whereas　it



conferred　a　privilege　upon　the　English　in　its　actual　operation　and



effects。　A　like　tendency　underlies　all　subsequent　treaties　of



commerce　negotiated　by　the　English。　By　profession　they　were　always



cosmopolites　and　philanthropists；　while　in　their　aims　and



endeavours　they　were　always　monopolists。



　　　　According　to　Adam　Smith's　second　argument；　the　English　gained



no　particular　advantages　from　this　treaty；　because　they　were　to　a



great　extent　obliged　to　send　away　to　other　countries　the　money



which　they　received　from　the　Portuguese　for　their　cloth；　and　with



it　to　purchase　goods　there；　whereas　it　would　have　been　far　more



profitable　for　them　to　make　a　direct　exchange　of　their　cloths



against　such　commodities　as　they　might　need；　and　thus　by　one



exchange　accomplish　that　which　by　means　of　the　trade　with　Portugal



they　could　only　effect　by　two　exchanges。　Really；　but　for　the　very



high　opinion　which　we　entertain　of　the　character　and　the　acumen　of



this　celebrated　savant；　we　should　in　the　face　of　this　argument　be



driven　to　despair　either　of　his　candour　or　of　his　clearness　of



perception。　To　avoid　doing　either；　nothing　is　left　for　us　but　to



bewail　the　weakness　of　human　nature；　to　which　Adam　Smith　has　paid



a　rich　tribute　in　the　shape　of　these　paradoxical；　almost　laughable；



arguments　among　other　instances；　being　evidently　dazzled　by　the



splendour　of　the　task；　so　noble　in　itself；　of　pleading　a



justification　for　absolute　freedom　of　trade。



　　　　In　the　argument　just　named　there　is　no　more　sound　sense　or



logic　than　in　the　proposition　that　a　baker；　because　he　sells　bread



to　his　customers　for　money；　and　with　that　money　buys　flour　from　the



miller；　does　an　unprofitable　trade；　because　if　he　had　exchanged　his



bread　directly　for　flour；　he　would　have　effected　his　purpose　by　a



single　act　of　exchange　instead　of　by　two　such　acts。　It　needs　surely



no　great　amount　of　sagacity　to　answer　such　an　allegation　by　hinting



that　the　miller　might　possibly　not　want　so　much　bread　as　the　baker



could　supply　him　with；　that　the　miller　might　perhaps　understand　and



undertake　baking　himself；　and　that；　therefore；　the　baker's　business



could　not　go　on　at　all　without　these　two　acts　of　exchange。　Such　in



effect　were　the　commercial　conditions　of　Portugal　and　England　at



the　date　of　the　treaty。　Portugal　received　gold　and　silver　from



South　America　in　exchange　for　manufactured　goods　which　she　then



exported　to　those　regions；　but　too　indolent　or　too　shiftless　to



manufacture　these　goods　herself；　she　bought　them　of　the　English　in



exchange　for　the　precious　metals。　The　latter　employed　the　precious



metals；　in　so　far　as　they　did　not　require　them　for　the　circulation



at　home；　in　exportation　to　India　or　China；　and　bought　goods　there



which　they　sold　again　on　the　European　continent；　whence　they



brought　home　agricultural　produce；　raw　material；　or　precious　metals



once　again。



　　　　We　now　ask；　in　the　name　of　common　sense；　who　would　have



purchased　of　the　English　all　those　cloths　which　they　exported　to



Portugal；　if　the　Portuguese　had　chosen　either　to　make　them　at　home



or　procure　them　from　other　countries？　The　English　could　not　in　that



case　have　sold　them　to　Portugal；　and　to　other　nations　they　were



already　selling　as　much　as　those　nations　would　take。　Consequently



the　English　would　have　manufactured　so　much　less　cloth　than　they



had　been　disposing　of　to　the　Portuguese；　they　would　have　exported



so　much　less　specie　to　India　than　they　had　obtained　from　Portugal。



They　would　have　brought　to　Europe　and　sold　on　the　Continent　just



that　much　less　of　East　Indian　merchandise；　and　consequently　would



have　taken　home　with　them　that　much　less　of　raw　material。



　　　　Quite　as　untenable　is　Adam　Smith's　third　argument　that；　if



Portuguese　money　had　not　flowed　in　upon　them；　the　English　might



have　supplied　their　requirements　of　this　article　in　other　ways。



Portugal；　he　conceived；　must　in　any　case　have　exported　her



superfluous　store　of　precious　metals；　and　these　would　have　reached



England　through　some　other　channel。　We　here　assume　that　the



Portuguese　had　manufactured　their　cloths　for　themselves；　had



themselves　exported　their　superfluous　stock　of　precious　metals　to



India　and　China；　and　had　purchased　the　return　cargoes　in　other



countries；　and　we　take　leave　to　ask　the　question　whether　under



these　circumstances　the　English　would　have　seen　much　of　Portuguese



money？　It　would　have　been　just　the　same　if　Portugal　had　concluded



a　Methuen　Treaty　with　Holland　or　France。　In　both　these　cases；　no



doubt；　some　little　of　the　money　would　have　gone　over　to　England；



but　only　so　much　as　she　could　have　acquired　by　the　sale　of　her　raw



wool。　In　short；　but　for　the　Methuen　Treaty；　the　manufactures；　the



trade；　and　the　shipping　of　the　English　could　never　have　reached



such　a　degree　of　expansion　as　they　have　attained　to。



　　　　But　whatever　be　the　estimate　formed　of　the　effects　of　the



Methuen　Treaty　as　respects　England；　this　much　at　least　appears　to



be　made　out；　that；　in　respect　to　Por