Note 2 — LETTER VIII.

“The charge on France for the interest of the newly-created debt, for the amount advanced by the Bank, and for the annual repayments—in short, for the whole additional burdens which the war has rendered necessary—is substantially to be met by increased Customs and Excise duties. The two principles which seem to have governed the selection of these imposts are, to extort the largest amount of money as it is leaving the hand of the purchaser, and to enforce the same process as the cash is falling into the hand of the native vendor; the results being to burden the consumer and restrict the national industry. Leading commodities of necessary use—such as sugar and coffee, all raw materials for manufacture, and all textile substances—have to pay ad valorem duties, in some cases ruinously heavy. Worse still, and bearing most seriously on English interests, heavy export duties are to be imposed on French products, among which wine, brandy, liqueurs, fruits, eggs, and oilcake stand conspicuous—these articles paying a fixed duty; while all others, grain and flour, we presume, included, will pay 1 per cent. ad valorem. Navigation dues are also to be levied on shipping, French and foreign; and the internal postage of letters is to be increased 25 per cent. From the changes in the Customs duties alone an increased revenue of £10,500,000 is anticipated. We will not venture to assert that these changes may not yield the amount of money so urgently needed; but if they do, the result will open up a new chapter in political economy. Judging from the experience of every civilised State, it is simply inconceivable that such a tariff can be productive, can possess the faculty of healthy natural increase, or can act otherwise than as a dead weight on the industrial energies of the country. Every native of France will have to pay more for articles of prime necessity, and will thus have less to spare on articles of luxury—that is, on those which contribute most to the revenue, with the least of damage to the resources of his industry. Again, the manufacturer will have the raw material of his trade enhanced in value; and, though he may have the benefit of a drawback on his exports, he will find his home market starved by State policy. His foreign customer will purchase less, because the cost is so much greater, and because his means are lessened by the increase in the prices of food through the export duty on French products. The French peasant finds his market contracted by an export duty which prevents the English consumers of his eggs, poultry, and wine from buying as largely as they once did; his profits are therefore reduced, his piece of ground is less valuable, his ability to pay taxes is lessened. The policy, in short, might almost be thought expressly devised to impoverish the entire nation when it most wants enriching—to strangle French industry by slow degrees, to dry up at their source the main currents of revenue. Our only hope is, that the proposals, by their very grossness, will defeat themselves.”—Telegraph, June 29th. ↑