of the war which began in 1755, and 
which they brought back with them to the 
mother country, where that wine had not been 
much in fashion before. Upon the conclusion 
of that war, in 1763 (by the 4th Geo. III
chap. 15, sect. 12), all the duties except L.3, 
10s. were allowed to be drawn back upon the 
exportation to the colonies of all wines, except 
French wines, to the commerce and consumption 
of which national prejudice would 
allow no sort of encouragement. The period 
between the granting of this indulgence and 
the revolt of our North American colonies
was probably too short to admit of any considerable 
change in the customs of those countries
The same act which, in the drawbacks upon 
all wines, except French wines, thus favoured 
the colonies so much more than other countries
in those upon the greater part of other 
commodities, favoured them much less. Upon 
the exportation of the greater part of commodities 
to other countries, half the old subsidy 
was drawn back. But this law enacted, 
that no part of that duty should be drawn 
back upon the exportation to the colonies of 
any commodities of the growth or manufacture 
either of Europe or the East Indies, except 
wines, white calicoes, and muslins
Drawbacks were, perhaps, originally granted 
for the encouragement of the carrying trade
which, as the freight of the ship is frequently 
paid by foreigners in money, was supposed to 
be peculiarly fitted for bringing gold and silver 
into the country. But though the carrying 
trade certainly deserves no peculiar encouragement
though the motive of the institution 
was, perhaps, abundantly foolish, the 
institution itself seems reasonable enough. 
Such drawbacks cannot force into this trade
greater share of the capital of the country than 
what would have gone to it of its own accord
had there been no duties upon importation
they only prevent its being excluded 
altogether by those duties. The carrying trade
though it deserves no preference, ought not 
to be precluded, but to be left free, like all 
other trades. It is a necessary resource to 
those capitals which cannot find employment
either in the agriculture or in the manufactures 
of the country, either in its home trade
or in its foreign trade of consumption. 
The revenue of the customs, instead of suffering, 
profits from such drawbacks, by that 
part of the duty which is retained. If the 
whole duties had been retained, the foreign 
goods upon which they are paid could seldom 
have been exported, nor consequently imported
for want of a market. The duties
therefore, of which a part is retained, would 
never have been paid. 
These reasons seem sufficiently to justify 
drawbacks, and would justify them, though 
the whole duties, whether upon the produce 
of domestic industry or upon foreign goods
were always drawn back upon exportation
The revenue of excise would, in this case indeed, 
suffer a little, and that of the customs
good deal more; but the natural balance of 
industry, the natural division and distribution 
of labour, which is always more or less disturbed 
by such duties, would be more nearly 
re-established by such a regulation
These reasons, however, will justify drawbacks 
only upon exporting goods to those 
countries which are altogether foreign and independent
not to those in which our merchants 
and manufacturers enjoy a monopoly
A drawback, for example, upon the exportation 
of European goods to our American colonies
will not always occasion a greater exportation 
than what would have taken place 
without it. By means of the monopoly which 
our merchants and manufacturers enjoy there, 
the same quantity might frequently, perhaps, 
be sent thither, though the whole duties were 
retained. The drawback, therefore, may frequently 
be pure loss to the revenue of excise 
and customs, without altering the state of the 
trade, or rendering it in any respect more extensive
How far such drawbacks can be justified 
as a proper encouragement to the industry 
of our colonies, or how far it is advantageous 
to the mother country that they should 
be exempted from taxes which are paid by 
all the rest of their fellow-subjects, will appear 
hereafter, when I come to treat of colonies
Drawbacks, however, it must always be understood, 
are useful only in those cases in 
which the goods, for the exportation of which 
they are given, are really exported to some 
foreign country, and not clandestinely re-imported 
into our own. That some drawbacks
particularly those upon tobacco, have frequently 
been abused in this manner, and have 
given occasion to many frauds, equally hurtful 
both to the revenue and to the fair trader
is well known. 
Bounties upon exportation are, in Great Britain
frequently petitioned for, and sometimes 
granted, to the produce of particular branches 
of domestic industry. By means of them, our 
merchants and manufacturers, it is pretended, 
will be enabled to sell their goods as cheap or 
cheaper than their rivals in the foreign market
A greater quantity, it is said, will thus 
be exported, and the balance of trade consequently 
turned more in favour of our own 
country. We cannot give our workmen a monopoly 
in the foreign, as we have done in the