known；　are　sometimes　shipped　and　sent　to　sea；　but　soon　afterwards
  clandestinely　relanded　in　some　other　part　of　the　country。　The
  defalcation　of　the　revenue　of　customs　occasioned　by　the　bounties
  and　drawbacks；　of　which　a　great　part　are　obtained　fraudulently；
  is　very　great。　The　gross　produce　of　the　customs　in　the　year　which
  ended　on　the　5th　of　January　1755　amounted　to　L5；068；000。　The
  bounties　which　were　paid　out　of　this　revenue；　though　in　that　year
  there　was　no　bounty　upon　corn；　amounted　to　L167；800。　The
  drawbacks　which　were　paid　upon　debentures　and　certificates；　to
  L2；156；800。　Bounties　and　drawbacks　together　amounted　to
  L2；324；600。　In　consequence　of　these　deductions　the　revenue　of　the
  customs　amounted　only　to　L2；743；400：　from　which；　deducting
  L287；900　for　the　expense　of　management　in　salaries　and　other
  incidents；　the　net　revenue　of　the　customs　for　that　year　comes　out
  to　be　L2；455；500。　The　expense　of　management　amounts　in　this
  manner　to　between　five　and　six　per　cent　upon　the　gross　revenue　of
  the　customs；　and　to　something　more　than　ten　per　cent　upon　what
  remains　of　that　revenue　after　deducting　what　is　paid　away　in
  bounties　and　drawbacks。
  Heavy　duties　being　imposed　upon　almost　all　goods　imported；
  our　merchant　importers　smuggle　as　much　and　make　entry　of　as
  little　as　they　can。　Our　merchant　exporters；　on　the　contrary；　make
  entry　of　more　than　they　export；　sometimes　out　of　vanity；　and　to
  pass　for　great　dealers　in　goods　which　pay　no　duty；　and　sometimes
  to　gain　a　bounty　or　a　drawback。　Our　exports；　in　consequence　of
  these　different　frauds；　appear　upon　the　customhouse　books　greatly
  to　overbalance　our　imports；　to　the　unspeakable　comfort　of　those
  politicians　who　measure　the　national　prosperity　by　what　they　call
  the　balance　of　trade。
  All　goods　imported；　unless　particularly　exempted；　and　such
  exemptions　are　not　very　numerous；　are　liable　to　some　duties　of
  customs。　If　any　goods　are　imported　not　mentioned　in　the　book　of
  rates；　they　are　taxed　at　4s。　9　9/20d。　for　every　twenty　shillings
  value；　according　to　the　oath　of　the　importer；　that　is；　nearly　at
  five　subsidies；　or　five　poundage　duties。　The　book　of　rates　is
  extremely　comprehensive；　and　enumerates　a　great　variety　of
  articles；　many　of　them　little　used；　and　therefore　not　well　known。
  It　is　upon　this　account　frequently　uncertain　under　what　article　a
  particular　sort　of　goods　ought　to　be　classed；　and　consequently
  what　duty　they　ought　to　pay。　Mistakes　with　regard　to　this
  sometimes　ruin　the　custom…house　officer；　and　frequently　occasion
  much　trouble；　expense；　and　vexation　to　the　importer。　In　point　of
  perspicuity；　precision；　and　distinctness；　therefore；　the　duties
  of　customs　are　much　more　inferior　to　those　of　excise。
  In　order　that　the　greater　part　of　the　members　of　any　society
  should　contribute　to　the　public　revenue　in　proportion　to　their
  respective　expense；　it　does　not　seem　necessary　that　every　single
  article　of　that　expense　should　be　taxed。　The　revenue　which　is
  levied　by　the　duties　of　excise　is　supposed　to　fall　as　equally
  upon　the　contributors　as　that　which　is　levied　by　the　duties　of
  customs；　and　the　duties　of　excise　are　imposed　upon　a　few　articles
  only　of　the　most　general　use　and　consumption。　It　has　been　the
  opinion　of　many　people　that；　by　proper　management；　the　duties　of
  customs　might　likewise；　without　any　loss　to　the　public　revenue；
  and　with　great　advantage　to　foreign　trade；　be　confined　to　a　few
  articles　only。
  The　foreign　articles　of　the　most　general　use　and　consumption
  in　Great　Britain　seem　at　present　to　consist　chiefly　in　foreign
  wines　and　brandies；　in　some　of　the　productions　of　America　and　the
  West　Indies…　sugar；　rum；　tobacco；　cocoanuts；　etc。；　and　in　some　of
  those　of　the　East　Indies…　tea；　coffee；　china…ware；　spiceries　of
  all　kinds；　several　sorts　of　piece…goods；　etc。　These　different
  articles　afford；　perhaps；　at　present；　the　greater　part　of　the
  revenue　which　is　drawn　from　the　duties　of　customs。　The　taxes
  which　at　present　subsist　upon　foreign　manufactures；　if　you　except
  those　upon　the　few　contained　in　the　foregoing　enumeration；　have
  the　greater　part　of　them　been　imposed　for　the　purpose；　not　of
  revenue；　but　of　monopoly；　or　to　give　our　own　merchants　an
  advantage　in　the　home　market。　By　removing　all　prohibitions；　and
  by　subjecting　all　foreign　manufactures　to　such　moderate　taxes　as
  it　was　found　from　experience　afforded　upon　each　article　the
  greatest　revenue　to　the　public；　our　own　workmen　might　still　have
  a　considerable　advantage　in　the　home　market；　and　many　articles；
  some　of　which　at　present　afford　no　revenue　to　government；　and
  others　a　very　inconsiderable　one；　might　afford　a　very　great　one。
  High　taxes；　sometimes　by　diminishing　the　consumption　of　the
  taxed　commodities；　and　sometimes　by　encouraging　smuggling；
  frequently　afford　a　smaller　revenue　to　government　than　what　might
  be　drawn　from　more　moderate　taxes。
  When　the　diminution　of　revenue　is　the　effect　of　the
  diminution　of　consumption　there　can　be　but　one　remedy；　and　that
  is　the　lowering　of　the　tax。
  When　the　diminution　of　the　revenue　is　the　diminution　of　the
  revenue　is　the　effect　of　the　encouragement　given　to　smuggling；　it
  may　perhaps　be　remedied　in　two　ways；　either　by　diminishing　the
  temptation　to　smuggle；　or　by　increasing　the　difficulty　of
  smuggling。　The　temptation　to　smuggle　can　be　diminished　only　by
  the　lowering　of　the　tax；　and　the　difficulty　of　smuggling　can　be
  increased　only　by　establishing　that　system　of　administration
  which　is　most　proper　for　preventing　it。
  The　excise　laws；　it　appears；　I　believe；　from　experience；
  obstruct　and　embarrass　the　operations　of　the　smuggler　much　more
  effectually　than　those　of　the　customs。　By　introducing　into　the
  customs　a　system　of　administration　as　similar　to　that　of　the
  excise　as　the　nature　of　the　different　duties　will　admit；　the
  difficulty　of　smuggling　might　be　very　much　increased。　This
  alteration；　it　has　been　supposed　by　many　people；　might　very
  easily　be　brought　about。
  The　importer　of　commodities　liable　to　any　duties　of　customs；
  it　has　been　said；　might　as　his　option　be　allowed　either　to　carry
  them　to　his　own　private　warehouse；　or　to　lodge　them　in　a
  warehouse　provided　either　at　his　own　expense　or　at　that　of　the
  public；　but　under　the　key　of　the　custom…house　officer；　and　never
  to　be　opened　but　in　his　presence。　If　the　merchant　carried　them　to
  his　own　private　warehouse；　the　duties　to　be　immediately　paid；　and
  never　afterwards　to　be　drawn　back；　and　that　warehouse　to　be　at
  all　times　subject　to　the　visit　and　examination　of　the
  custom…house　officer；　in　order　to　ascertain　how　far　the　quantity
  contained　in　it　corresponded　with　that　for　which　the　duty　had
  been　paid。　If　he　carried　them　to　the　public　warehouse；　no　duty　to
  be　paid　till　they　were　taken　out　for　home　consumption。　If　taken
  out　for　exportation；　to　be　duty　free；　proper　security　being
  always　given　that　they　should　be　so　exported。　The　dealers　in
  those　particular　commodities；　either　by　wholesale　or　retail；　to
  be　at　all　times　subject　to　the　visit　and　examination　of　the
  custom…house　officer；　and　to　be　obliged　to　justify　by　proper
  certificates　the　payment　of　the　duty　upon　the　whole　quantity
  contained　in　their　shops　or　warehouses。　What　are　called　the
  excise…duties　upon　rum　imported　are　at　present　levied　in　this
  manner；　and　the　same　system　of　administration　might　perhaps　be
  extended　to　all　duties　upon　goods　imported；　provided　always　that
  those　duties　were；　like　the　duties　of　excise；　confined　to　a　few
  sorts　of　goods　of　the　most　general　use　and　consumption。　If　they
  were　extended　to　almost　all　sorts　of　goods；　as　at　present；　public
  warehouses　of　sufficient　extent　could　not　easily　be　provided；　and
  goods　of　a　very　delicate　nature；　or　of　which　the　preservation
  required　much　care　and　attention；　could　not　safely　be　trusted　by
  the　merchant　in　any　warehouse　but　his　own。
  If　by　such　a　system　of　administration　smuggling；　to　any
  considerable　extent；　could　be　prevented　even　under　pretty　high
  duties；　and　if　every　duty　was　occasionally　either　heightened　or
  lowered　according　as　it　was　most　likely；　either　the　one　way　or
  the　other；　to　afford　the　greatest　revenue　to　the　state；　taxation
  being　always　employed　as　an　instrument　of　revenue　and　never　of
  monopoly；　it　seems　not　improbable　that　a　revenue　at　least　equal
  to　the　present　net　revenue　of　the　customs　might　be　drawn　from
  duties　upon　the　importation　of　only　a　few　sorts　of　goods　of　the
  most　general　use　and　consumption；　and　that　the　duties　of　customs
  might　thus　be　brought　to　the　same　degree　of　simplicity；
  certainty；　and　precision　as　those　of　excise。　What　the　revenue　at
  present　loses　by　drawbacks　upon　the　re…exportation　of　foreign
  goods　which　are　afterwards　relanded　and　consumed　at　home　would
  under　this　system　be　saved　altogether。　If　to　this　saving；　which
  would　alone　be　very　considerable；　were　added　the　abolition　of　all
  bounties　upon　the　exportation　of　home　produce　in　all　cases　in
  which　those