1820 Decr. 26

Go on a little further

Supposed resource the (...?) th. Taxes /the amount conveyed to Spain/ on the produce

of Ultramaria exported to countries other than Spain. To Ultramaria in so far

applicable this is beyond doubt of all modes of extracting money from Ultramaria for

the benefit of Spain the least burthensome to Ultramaria. The only person, on whom,

in a direct and immediate way, burthen in any shape is imposed, are the foreigners by

whom the exported goods thus taxed are consumed. If indeed by the augmentation,

encrease given to the price, the quantity tus consumed by foreigners is diminished,

to the extent of such diminution the tax operates in so far as prohibition imposed

upon the production of the articles thus taxes. But by the prohibition thus imposed

on the produce of this one article, neither prohibition nor tax is imposed upon any

other article not necessary to the production of it: whatever quantity of captial

would, but for the indirect and immediate prohibition have been employed in the

production of the article thus indirectly and immediately prohibited, is left free to

be employed in all other articles to which the prohibition does not extend. If indeed

there be no such other article to which the capital could be so applied without a

certain diminution of the rate of profit, say for example 5 per cent, on this

supposition a tax to that amount is imposed upon all those who but for the

prohibition would have employed that capital in the production of articles of that

same sort. But the existence of any such state of things the existence or not upon

the face of it to such a degree assured /probable/ as to be admitted without special

proof applied to this or that species of article in particular: and till in the

instance of some determinate species of commodity such proof is made the mode of

taxation in question will continue in possession of the character of being as far as

it goes, as burthensome to the inhabitnts of the country in which the article is

produced.