sale-dealer, the price of any commodity imported by him on which a new tax has been laid?

Capital invested in land, by the force and power of a law, in the nature of things established by Divine Providence, will always command a fair profit or return for it, ultrâ all taxes imposed upon it, or upon the dealers in it; i.e. the owners and farmers of land, just in the same way as capital invested otherwise than in land does.

Capital invested in land, from the great security of it, yields a smaller profit or return, than capital invested in any other manner; and landlords will no more part with their capital, (i.e. let

the present purpose, it may be assumed (as stated under the Article "Corn Laws and Corn-trade," in Mr. Macculloch's Commercial Dictionary), that 14 millions (13,718,279) of quarters of wheat, and 39 millions (38,962,472) of quarters of other grain, are annually produced and consumed in the United Kingdom.

Eight and a half millions (the amount of local taxation referred to in the text), which are levied it may be said, almost wholly from the land, would be equivalent to a tax of six shillings a quarter, on 14 millions of quarters of wheat, and two shillings and three-pence a quarter, on 39 millions of quarters of other grain.

As the producers of grain in the United Kingdom are subject to enduring heavy taxes upon the land which yields it, from which the producers of grain in foreign countries are exempt -the proposal to parliament of the late Whig government, of an enduring fixed duty of eight shillings a quarter, on all foreign wheat, imported into the United Kingdom, was probably founded on some such computation as the above.

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their land to be farmed,) for less than a fair profit or return for it, ultra all taxes imposed upon it or upon them, than merchant-importers will part with their commodities for less than such profit

or return.

To ask how landlords are able to fix the rent of their lands, or merchants the price of their commodities, so as to yield such return, is as unreasonable a question, as it would be to ask, how the eternal and, by man, unalterable law of gravity, or any other law of nature produces its effects.

The assumption that taxes imposed upon land, or upon the owners or farmers of land, fall exclusively upon them, implies, that taxes can be imposed on the producers of, or dealers in any commodity, so as to fall on such producers or dealers, (further than as themselves consumers) and not on the consumers of that commoditythan which there cannot be a more erroneous assumption—the error of which may appear more strikingly, if it be supposed, that a tax were to be laid upon the producers of, or dealers in any commodity, equal to the whole amount of their profits as producers or dealers in that commodity. In that case, if they could not shift such tax upon the consumers of the commodity, and were nevertheless to continue their trade, they would labour merely for taxes, to be paid to

the state, without any profit to themselves; which proves the fallacy of the assumption, by the reductio ad absurdum.

And as the question is not of quantity or degree, but of principle-then it follows-if the producer, or dealer in any commodity, can shift any, that he can, and, in the course and nature of things, that he will shift every tax imposed upon him, on the consumer, contributing himself to such a tax no further or otherwise, than as he is himself a consumer of the commodity in which he deals.

It would be as illogical to suppose a producer of, or dealer in any commodity himself to pay all taxes, or any tax imposed upon it, out of his own purse, without reimbursement-as to suppose that a merchant-importer paid out of his own purse, without reimbursement, the taxes of customs on all tea and sugar imported and sold by him in the market, instead of the taxes only on the quantity of tea and sugar consumed by himself and his family.

The foregoing reasoning or argument, proceeds on the assumption of a free state of things; that is to say-such a state of things, as that the principle (namely, that all taxes upon commodities, whether imposed directly or indirectly thereon, are paid by the consumer) is at liberty to apply and to work naturally upon all changes, made by the imposition of taxes, upon particular

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persons or things. The existence of contracts between parties, may, and often does for a time, impede and delay the operation of that principle: for instance, in the case of a lease between landlord and tenant, for a term of years—if a tax were imposed directly on the landlord, he could not, pending the term, increase the rent upon the tenant, even though the supposed tax were equal to, and took from him the whole rent of the land; and therefore such a tax, however little or great, would not, pending the lease, increase the price of the produce of land. If all the lands of the United Kingdom were under lease for the same term of years, and a tax of equal amount to the whole rent were imposed, and could be levied, upon all the owners of land, they would, during that term, as landlords, be penniless.

But if a tax were imposed directly upon the farmers of land, they would immediately require, and would obtain for the productions of their farms, an increased price equivalent to the amount of the tax, and so throw it upon the consumers of that produce; themselves bearing only their part of such tax as consumers. If the supposed tax were imposed to an amount equal to the whole average annual profit of the farmer, it is manifest, that he must do so, and be able to do so, or be ruined.

The disturbing force or power, which contracts

interpose against the free working, or operation of the said principle, has given some colour to the false assumption, that certain taxes fall absolutely and exclusively on the owners or farmers of land. But it must on reflection be evident, that such disturbing force can only operate while it lasts, and that it must necessarily in process of time, as far as arising out of contract, cease, and become inoperative.

In such a commonwealth as that of the United Kingdom, the infinite variety of subsisting contracts, both as to conditions, and term of duration, may and must, on the first imposition of a direct tax on the owners of land, so many of whom are under contracts, very materially disturb the free working, and delay the full operation and effect of the principle laid down, viz.—that all taxes upon commodities-whether laid in the first instance, directly upon them, by their measure or weight: or indirectly on the producers of them, or the importers of them for home-consumption, or on other the dealers in the same-must ultimately fall upon, and be paid by the consumer. But the attempt to show nevertheless, that that principle is true, it is hoped has not been unsuccessful.

In fact, the very same parties, who sometimes contend, that taxes imposed upon land, or on the owners or farmers of land, are paid and borne exclusively by them-often at other times show,