Ch. xi. Of Corn Laws, S^x. 163 



footing with enterprising owners, and to give them 

 the same independence, and the same encourage- 

 ment to employ their capitals with spirit, as mer- 

 chants and manufacturers. 



Secondly ; a system of direct or indirect taxa- 

 tion, of such a nature as to throw a weight upon 

 the agriculture of a country, which is either un- 

 equal, or, from peculiar circumstances, can be 

 better borne by commerce and manufactures. 



It is universally allowed that a direct tax on 

 corn grown at home, if not counterbalanced by a 

 corresponding tax on the importation of it, might 

 be such as to destroy at once the cultivation of 

 grain, and make a country import the whole of its 

 consumption ; and a partial effect of the same 

 kind would follow, if, by a system of indirect 

 taxation, the general price of labour were raised 

 and yet by means of drawbacks on home and fo- 

 reign commodities, by an abundance of colonial 

 produce, and by those peculiar articles,* the de- 

 mand for which abroad would not be much affected 

 by the increase of price, the value of the whole of 

 the exports, though not the quantity, might admit 

 of increase. 



Thirdly ; improved machinery, combined with 

 extensive capital and a very advantageous division 

 of labour. 



If in any country, by means of capital and ma- 

 chinery, one man be enabled to do the work of 



* A rise in tlie price of labour in China would certainly increase 

 the returns which it receives for its t€as. 



M 2 



