132 Tracer Political on revenue laws. Nov. 29. 
the equivalent of the surplus of duty, by which it is 
eceasioned. . 
_ There are two ways in which smuggling hurts 
the publick revenue ;—by diminifhing the legal im- 
portation of the commodities smuggled ; and by lefs- 
ening the advantages derived to the publick from 
the industry of individuals. I fhall examine these 
separately. 
1st, The consumption of spirits, or outer goods of 
the kind, smuggled, would be increased by means of 
the price being reduced, which would take place if 
smuggling were destroyed by lowering the duties, 
in a proportion exactly equal to the difference be- 
_ twixt the profits of the smuggler, and those of the 
fair trader, provided the duties were just lowered 
toa degree sufficient to effect the purpose, and no 
more ; for it is only a difference of price, equal to 
- that additional profit, that keeps up smuggling ; im- 
mediately on that difference being done away, the 
fair trader steps into the fhoes of the smuggler. If 
the duties were lowered more than the degree ne- © 
cefsary to prevent smuggling, an additional reduction 
of price, and consequently an additional increase of 
consumption, would take place. ; 
The quantity of foreign goods consumed in a coun- 
try, must necefsarily consist of the three following 
descriptions ; goods legally imported, goods smuggled, 
and goods sold by the revenue officers, having been sei- 
zed in the attempt to smuggle. 
The first of these clafses is the only one for which, ~ 
government draws the full duty ; and if smuggling 
