or (_b_) by prohibitive taxation.

2. Imports admitted but taxed.

3. Free imports.

4. Imports encouraged by bounties.

Exports might be graded in similar fashion.

1. Prohibited exports (_e.g._, sheep and wool, raw hides,
tanned leather, woollen yarn, textile implements,[12]
certain forms of skilled labour).

2. Exports upon which duties are levied (_e.g._, coals[13]).

3. Free exports.

4. Exports encouraged by bounties, or by drawbacks.

The unnatural and injurious character of most of this legislation is
best proved by the notable inability to effectively enforce its
application. The chartered companies were continually complaining of
the infringement of their monopolies by private adventurers, and more
than one of them failed through inability to crush out this illegal
competition. A striking condemnation of our policy towards France
consisted in the growth of an enormous illicit trade which, in spite
of the difficulties which beset it, made a considerable part of our
aggregate foreign trade during the whole of the century. The lack of
any clear perception of the mutuality of advantage in foreign and
colonial trade was the root fallacy which underlay these restrictions.
Professor Cunningham rightly says of the colonial policy of England,
that it "implied that each distinct member should strengthen the head,
and not at all that these members should mutually strengthen each
other."[14]

So, as we tried to get the better of our colonies, still more
rigorously did we apply the same methods to foreign countries,
regarding each gain which accrued to us as an advantage which would
have wholly gone to the foreigner if we had not by firmness and
enterprise secured it for ourselves.

The slight extent of foreign intercourse was, however, partly due to
causes which are to be regarded as genuinely economic. The life and
experience of the great mass of the population of all countries was
extremely restricted; they were a scattered and rural folk whose wants
and tastes were simple, few, home-bred, and customary. The customary
standard of consumption, slowly built up in conformity with local
production, gave little encouragement to foreign trade. Moreover, to
meet the new tastes and the more varied consumption which gradually
found its way over this country, it was in conformity with the
economic theory and practice of the day to prefer the establishment of
new home indust