446 
Statistics of Van Diemen s Land. 
sariat and military expenditure connected with the convicts and 
the troops. This agrees with the actual nature of the commercial 
transactions of the three years under consideration,—for during 
this period a visible improvement has taken p^ace—money has 
been plentiful at a low rate of interest*—there have been but few 
failures—credit and confidence have generally prevailed—and a 
large amount of capital has been put in circulation in buildings of 
a superior class. Great activity also has been displayed in ship¬ 
building,—not only of small craft for the inter-colonial and 
coasting trade, but of vessels of larger burthen, at both ports, for 
trading with the mother country. This evidence of colonial 
energy and enterprise must be hailed with the most lively satis¬ 
faction, as many springs* of industry are connected with its 
successful prosecution ; besides turning to profitable account the 
valuable timber of our island, so admirably adapted to naval 
purposes. 
In looking over tables Nos. 5 and 6, which detail the various 
articles imported and exported during 1845 and 1846, we shall 
be led into a useful course of inquiry if we trace out the sound 
rule for estimating the effects of foreign imports upon colonial 
prosperity. It is doubtless sound policy to encourage native 
industry as far as practicable, by promoting the consumption of 
our domestic manufactures, and by fostering the laudable enter¬ 
prise of all who are striving to add to our staple productions. 
But it must, at the same time, be understood, that there is a 
natural and proper limit to the prosecution of such undertakings ; 
and it is simply this—that the colonial manufacturer must sell 
upon terms not less favourable, as to price and quality, than does 
the importer; the colonial made articles must be in every respect 
as good and cheap as ihose imported. The tendency of high 
prices being always to check the natural demand, and con¬ 
sequently to limit the natural consumption, therefore, if he cannot 
meet his foreign competitor in the market, whether by the adoption 
of some more economical process, or by being content with a less 
rate of profit, or from the demand being inadequate, the sooner 
* When this was written money was only six per cent, at the banks. 
