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¡¡¡¡¡¡¡¡¡¡WHEN¡¡a¡¡nation¡¡binds¡¡itself¡¡by¡¡treaty¡¡either¡¡to¡¡permit¡¡the

entry¡¡of¡¡certain¡¡goods¡¡from¡¡one¡¡foreign¡¡country¡¡which¡¡it

prohibits¡¡from¡¡all¡¡others£»¡¡or¡¡to¡¡exempt¡¡the¡¡goods¡¡of¡¡one¡¡country

from¡¡duties¡¡to¡¡which¡¡it¡¡subjects¡¡those¡¡of¡¡all¡¡others£»¡¡the

country£»¡¡or¡¡at¡¡least¡¡the¡¡merchants¡¡and¡¡manufacturers¡¡of¡¡the

country£»¡¡whose¡¡commerce¡¡is¡¡so¡¡favoured£»¡¡must¡¡necessarily¡¡derive

great¡¡advantage¡¡from¡¡the¡¡treaty¡£¡¡Those¡¡merchants¡¡and

manufacturers¡¡enjoy¡¡a¡¡sort¡¡of¡¡monopoly¡¡in¡¡the¡¡country¡¡which¡¡is¡¡so

indulgent¡¡to¡¡them¡£¡¡That¡¡country¡¡becomes¡¡a¡¡market¡¡both¡¡more

extensive¡¡and¡¡more¡¡advantageous¡¡for¡¡their¡¡goods£º¡¡more¡¡extensive£»

because¡¡the¡¡goods¡¡of¡¡other¡¡nations¡¡being¡¡either¡¡excluded¡¡or

subjected¡¡to¡¡heavier¡¡duties£»¡¡it¡¡takes¡¡off¡¡a¡¡greater¡¡quantity¡¡of

theirs£º¡¡more¡¡advantageous£»¡¡because¡¡the¡¡merchants¡¡of¡¡the¡¡favoured

country£»¡¡enjoying¡¡a¡¡sort¡¡of¡¡monopoly¡¡there£»¡¡will¡¡often¡¡sell¡¡their

goods¡¡for¡¡a¡¡better¡¡price¡¡than¡¡if¡¡exposed¡¡to¡¡the¡¡free¡¡competition

of¡¡all¡¡other¡¡nations¡£

¡¡¡¡¡¡¡¡¡¡Such¡¡treaties£»¡¡however£»¡¡though¡¡they¡¡may¡¡be¡¡advantageous¡¡to

the¡¡merchants¡¡and¡¡manufacturers¡¡of¡¡the¡¡favoured£»¡¡are¡¡necessarily

disadvantageous¡¡to¡¡those¡¡of¡¡the¡¡favouring¡¡country¡£¡¡A¡¡monopoly¡¡is

thus¡¡granted¡¡against¡¡them¡¡to¡¡a¡¡foreign¡¡nation£»¡¡and¡¡they¡¡must

frequently¡¡buy¡¡the¡¡foreign¡¡goods¡¡they¡¡have¡¡occasion¡¡for¡¡dearer

than¡¡if¡¡the¡¡free¡¡competition¡¡of¡¡other¡¡nations¡¡was¡¡admitted¡£¡¡That

part¡¡of¡¡its¡¡own¡¡produce¡¡with¡¡which¡¡such¡¡a¡¡nation¡¡purchases

foreign¡¡goods¡¡must¡¡consequently¡¡be¡¡sold¡¡cheaper£»¡¡because¡¡when¡¡two

things¡¡are¡¡exchanged¡¡for¡¡one¡¡another£»¡¡the¡¡cheapness¡¡of¡¡the¡¡one¡¡is

a¡¡necessary¡¡consequence£»¡¡or¡¡rather¡¡the¡¡same¡¡thing¡¡with¡¡the

dearness¡¡of¡¡the¡¡other¡£¡¡The¡¡exchangeable¡¡value¡¡of¡¡its¡¡annual

produce£»¡¡therefore£»¡¡is¡¡likely¡¡to¡¡be¡¡diminished¡¡by¡¡every¡¡such

treaty¡£¡¡This¡¡diminution£»¡¡however£»¡¡can¡¡scarce¡¡amount¡¡to¡¡any

positive¡¡loss£»¡¡but¡¡only¡¡to¡¡a¡¡lessening¡¡of¡¡the¡¡gain¡¡which¡¡it¡¡might

otherwise¡¡make¡£¡¡Though¡¡it¡¡sells¡¡its¡¡goods¡¡cheaper¡¡than¡¡it

otherwise¡¡might¡¡do£»¡¡it¡¡will¡¡not¡¡probably¡¡sell¡¡them¡¡for¡¡less¡¡than

they¡¡cost£»¡¡nor£»¡¡as¡¡in¡¡the¡¡case¡¡of¡¡bounties£»¡¡for¡¡a¡¡price¡¡which

will¡¡not¡¡replace¡¡the¡¡capital¡¡employed¡¡in¡¡bringing¡¡them¡¡to¡¡market£»

together¡¡with¡¡the¡¡ordinary¡¡profits¡¡of¡¡stock¡£¡¡The¡¡trade¡¡could¡¡not

go¡¡on¡¡long¡¡if¡¡it¡¡did¡£¡¡Even¡¡the¡¡favouring¡¡country£»¡¡therefore£»¡¡may

still¡¡gain¡¡by¡¡the¡¡trade£»¡¡though¡¡less¡¡than¡¡if¡¡there¡¡was¡¡a¡¡free

competition¡£

¡¡¡¡¡¡¡¡¡¡Some¡¡treaties¡¡of¡¡commerce£»¡¡however£»¡¡have¡¡been¡¡supposed

advantageous¡¡upon¡¡principles¡¡very¡¡different¡¡from¡¡these£»¡¡and¡¡a

commercial¡¡country¡¡has¡¡sometimes¡¡granted¡¡a¡¡monopoly¡¡of¡¡this¡¡kind

against¡¡itself¡¡to¡¡certain¡¡goods¡¡of¡¡a¡¡foreign¡¡nation£»¡¡because¡¡it

expected¡¡that¡¡in¡¡the¡¡whole¡¡commerce¡¡between¡¡them£»¡¡it¡¡would

annually¡¡sell¡¡more¡¡than¡¡it¡¡would¡¡buy£»¡¡and¡¡that¡¡a¡¡balance¡¡in¡¡gold

and¡¡silver¡¡would¡¡be¡¡annually¡¡returned¡¡to¡¡it¡£¡¡It¡¡is¡¡upon¡¡this

principle¡¡that¡¡the¡¡treaty¡¡of¡¡commerce¡¡between¡¡England¡¡and

Portugal£»¡¡concluded¡¡in¡¡1703¡¡by¡¡Mr¡£¡¡Methuen£»¡¡has¡¡been¡¡so¡¡much

commended¡£¡¡The¡¡following¡¡is¡¡a¡¡literal¡¡translation¡¡of¡¡that¡¡treaty£»

which¡¡consists¡¡of¡¡three¡¡articles¡¡only¡£¡¡

¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡ART¡£¡¡I¡£¡¡

¡¡¡¡¡¡¡¡¡¡His¡¡sacred¡¡royal¡¡majesty¡¡of¡¡Portugal¡¡promises£»¡¡both¡¡in¡¡his

own¡¡name£»¡¡and¡¡that¡¡of¡¡his¡¡successors£»¡¡to¡¡admit£»¡¡for¡¡ever

hereafter£»¡¡into¡¡Portugal£»¡¡the¡¡woollen¡¡cloths£»¡¡and¡¡the¡¡rest¡¡of¡¡the

woollen¡¡manufactures¡¡of¡¡the¡¡British£»¡¡as¡¡was¡¡accustomed£»¡¡till¡¡they

were¡¡prohibited¡¡by¡¡the¡¡law£»¡¡nevertheless¡¡upon¡¡this¡¡condition£º¡¡

¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡ART¡£¡¡II¡£¡¡

¡¡¡¡¡¡¡¡¡¡That¡¡is¡¡to¡¡say£»¡¡that¡¡her¡¡sacred¡¡royal¡¡majesty¡¡of¡¡Great

Britain¡¡shall£»¡¡in¡¡her¡¡own¡¡name£»¡¡and¡¡that¡¡of¡¡her¡¡successors£»¡¡be

obliged£»¡¡for¡¡ever¡¡hereafter£»¡¡to¡¡admit¡¡the¡¡wines¡¡of¡¡the¡¡growth¡¡of

Portugal¡¡into¡¡Britain£»¡¡so¡¡that¡¡at¡¡no¡¡time£»¡¡whether¡¡there¡¡shall¡¡be

peace¡¡or¡¡war¡¡between¡¡the¡¡kingdoms¡¡of¡¡Britain¡¡and¡¡France£»¡¡anything

more¡¡shall¡¡be¡¡demanded¡¡for¡¡these¡¡wines¡¡by¡¡the¡¡name¡¡of¡¡custom¡¡or

duty£»¡¡or¡¡by¡¡whatsoever¡¡other¡¡title£»¡¡directly¡¡or¡¡indirectly£»

whether¡¡they¡¡shall¡¡be¡¡imported¡¡into¡¡Great¡¡Britain¡¡in¡¡or

hogsheads£»¡¡or¡¡other¡¡casks£»¡¡than¡¡what¡¡shall¡¡be¡¡demanded¡¡for¡¡the

like¡¡quantity¡¡or¡¡measure¡¡of¡¡French¡¡wine£»¡¡deducting¡¡or¡¡abating¡¡a

third¡¡part¡¡of¡¡the¡¡custom¡¡or¡¡duty¡£¡¡But¡¡if¡¡at¡¡any¡¡time¡¡this

deduction¡¡or¡¡abatement¡¡of¡¡customs£»¡¡which¡¡is¡¡to¡¡be¡¡made¡¡as

aforesaid£»¡¡shall¡¡in¡¡any¡¡manner¡¡be¡¡attempted¡¡and¡¡prejudiced£»¡¡it

shall¡¡be¡¡just¡¡and¡¡lawful¡¡for¡¡his¡¡sacred¡¡royal¡¡majesty¡¡of

Portugal£»¡¡again¡¡to¡¡prohibit¡¡the¡¡woollen¡¡cloths£»¡¡and¡¡the¡¡rest¡¡of

the¡¡British¡¡woollen¡¡manufactures¡£¡¡

¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡ART¡£¡¡III¡£¡¡

¡¡¡¡¡¡¡¡¡¡The¡¡most¡¡excellent¡¡lords¡¡the¡¡plenipotentiaries¡¡promise¡¡and

take¡¡upon¡¡themselves£»¡¡that¡¡their¡¡above¡¡named¡¡masters¡¡shall¡¡ratify

this¡¡treaty£»¡¡and¡¡within¡¡the¡¡space¡¡of¡¡two¡¡months¡¡the¡¡ratifications

shall¡¡be¡¡exchanged¡£

¡¡¡¡¡¡¡¡¡¡By¡¡this¡¡treaty¡¡the¡¡crown¡¡of¡¡Portugal¡¡becomes¡¡bound¡¡to¡¡admit

the¡¡English¡¡woollens¡¡upon¡¡the¡¡same¡¡footing¡¡as¡¡before¡¡the

prohibition£»¡¡that¡¡is£»¡¡not¡¡to¡¡raise¡¡the¡¡duties¡¡which¡¡had¡¡been¡¡paid

before¡¡that¡¡time¡£¡¡But¡¡it¡¡does¡¡not¡¡become¡¡bound¡¡to¡¡admit¡¡them¡¡upon

any¡¡better¡¡terms¡¡than¡¡those¡¡of¡¡any¡¡other¡¡nation£»¡¡of¡¡France¡¡or

Holland¡¡for¡¡example¡£¡¡The¡¡crown¡¡of¡¡Great¡¡Britain£»¡¡on¡¡the¡¡contrary£»

becomes¡¡bound¡¡to¡¡admit¡¡the¡¡wines¡¡of¡¡Portugal¡¡upon¡¡paying¡¡only

two¡­thirds¡¡of¡¡the¡¡duty¡¡which¡¡is¡¡paid¡¡for¡¡those¡¡of¡¡France£»¡¡the

wines¡¡most¡¡likely¡¡to¡¡come¡¡into¡¡competition¡¡with¡¡them¡£¡¡So¡¡far¡¡this

treaty£»¡¡therefore£»¡¡is¡¡evidently¡¡advantageous¡¡to¡¡Portugal£»¡¡and

disadvantageous¡¡to¡¡Great¡¡Britain¡£

¡¡¡¡¡¡¡¡¡¡It¡¡has¡¡been¡¡celebrated£»¡¡however£»¡¡as¡¡a¡¡masterpiece¡¡of¡¡the

commercial¡¡policy¡¡of¡¡England¡£¡¡Portugal¡¡receives¡¡annually¡¡from¡¡the

Brazils¡¡a¡¡greater¡¡quantity¡¡of¡¡gold¡¡than¡¡can¡¡be¡¡employed¡¡in¡¡its

domestic¡¡commerce£»¡¡whether¡¡in¡¡the¡¡shape¡¡of¡¡coin¡¡or¡¡of¡¡plate¡£¡¡The

surplus¡¡is¡¡too¡¡valuable¡¡to¡¡be¡¡allowed¡¡to¡¡lie¡¡idle¡¡and¡¡locked¡¡up

in¡¡coffers£»¡¡and¡¡as¡¡it¡¡can¡¡find¡¡no¡¡advantageous¡¡market¡¡at¡¡home£»¡¡it

must£»¡¡notwithstanding¡¡any¡¡prohibition£»¡¡be¡¡sent¡¡abroad£»¡¡and

exchanged¡¡for¡¡something¡¡for¡¡which¡¡there¡¡is¡¡a¡¡more¡¡advantageous

market¡¡at¡¡home¡£¡¡A¡¡large¡¡share¡¡of¡¡it¡¡comes¡¡annually¡¡to¡¡England£»¡¡in

return¡¡either¡¡for¡¡English¡¡goods£»¡¡or¡¡for¡¡those¡¡of¡¡other¡¡European

nations¡¡that¡¡receive¡¡their¡¡returns¡¡through¡¡England¡£¡¡Mr¡£¡¡Baretti

was¡¡informed¡¡that¡¡the¡¡weekly¡¡packet¡­boat¡¡from¡¡Lisbon¡¡brings£»¡¡one

week¡¡with¡¡another£»¡¡more¡¡than¡¡fifty¡¡thousand¡¡pounds¡¡in¡¡gold¡¡to

England¡£¡¡The¡¡sum¡¡had¡¡probably¡¡been¡¡exaggerated¡£¡¡It¡¡would¡¡amount

to¡¡more¡¡than¡¡two¡¡millions¡¡six¡¡hundred¡¡thousand¡¡pounds¡¡a¡¡year£»

which¡¡is¡¡more¡¡than¡¡the¡¡Brazils¡¡are¡¡supposed¡¡to¡¡afford¡£

¡¡¡¡¡¡¡¡¡¡Our¡¡merchants¡¡were¡¡some¡¡years¡¡ago¡¡out¡¡of¡¡humour¡¡with¡¡the

crown¡¡of¡¡Portugal¡£¡¡Some¡¡privileges¡¡which¡¡had¡¡been¡¡granted¡¡them£»

not¡¡by¡¡treaty£»¡¡but¡¡by¡¡the¡¡free¡¡grace¡¡of¡¡that¡¡crown£»¡¡at¡¡the

solicitation¡¡indeed£»¡¡it¡¡is¡¡probable£»¡¡and¡¡in¡¡return¡¡for¡¡much

greater¡¡favours£»¡¡defence¡¡and¡¡protection£»¡¡from¡¡the¡¡crown¡¡of¡¡Great

Britain¡¡had¡¡been¡¡either¡¡infringed¡¡or¡¡revoked¡£¡¡The¡¡people£»

therefore£»¡¡usually¡¡most¡¡interested¡¡in¡¡celebrating¡¡the¡¡Portugal

trade¡¡were¡¡then¡¡rather¡¡disposed¡¡to¡¡represent¡¡it¡¡as¡¡less

advantageous¡¡than¡¡it¡¡had¡¡commonly¡¡been¡¡imagined¡£¡¡The¡¡far¡¡greater

part£»¡¡almost¡¡the¡¡whole£»¡¡they¡¡pretended£»¡¡of¡¡this¡¡annual

importation¡¡of¡¡gold£»¡¡was¡¡not¡¡on¡¡account¡¡of¡¡Great¡¡Britain£»¡¡but¡¡of

other¡¡European¡¡nations£»¡¡the¡¡fruits¡¡and¡¡wines¡¡of¡¡Portugal¡¡annually

imported¡¡into¡¡Great¡¡Britain¡¡nearly¡¡compensating¡¡the¡¡value¡¡of¡¡the

British¡¡goods¡¡sent¡¡thither¡£

¡¡¡¡¡¡¡¡¡¡Let¡¡us¡¡suppose£»¡¡however£»¡¡that¡¡the¡¡whole¡¡was¡¡on¡¡account¡¡of

Great¡¡Britain£»¡¡and¡¡that¡¡it¡¡amounted¡¡to¡¡a¡¡still¡¡greater¡¡sum¡¡than

Mr¡£¡¡Baretti¡¡seems¡¡to¡¡imagine£»¡¡this¡¡trade¡¡would¡¡not£»¡¡upon¡¡that

account£»¡¡be¡¡more¡¡advantageous¡¡than¡¡any¡¡other¡¡in¡¡which£»¡¡for¡¡the

same¡¡value¡¡sent¡¡out£»¡¡we¡¡received¡¡an¡¡equal¡¡value¡¡of¡¡consumable

goods¡¡in¡¡return¡£

¡¡¡¡¡¡¡¡¡¡It¡¡is¡¡but¡¡a¡¡very¡¡small¡¡part¡¡of¡¡this¡¡importation¡¡which£»¡¡it

can¡¡be¡¡supposed£»¡¡is¡¡employed¡¡as¡¡an¡¡annual¡¡addition¡¡either¡¡to¡¡the

plate¡¡or¡¡to¡¡the¡¡coin¡¡of¡¡the¡¡kingdom¡£¡¡The¡¡rest¡¡must¡¡all¡¡be¡¡sent

abroad¡¡and¡¡exchanged¡¡for¡¡consumable¡¡goods¡¡of¡¡some¡¡kind¡¡or¡¡other¡£

But¡¡if¡¡those¡¡consumable¡¡goods¡¡were¡¡purchased¡¡directly¡¡with¡¡the

produce¡¡of¡¡English¡¡industry£»¡¡it¡¡would¡¡be¡¡more¡¡for¡¡the¡¡advantage

of¡¡England¡¡than¡¡first¡¡to¡¡purchase¡¡with¡¡that¡¡produce¡¡the¡¡gold¡¡of

Portugal£»¡¡and¡¡afterwards¡¡to¡¡purchase¡¡

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