His letter to Smith is as follows:—­

     MELVILLE, 30th October 1779.

DEAR SIR—­I received the enclosed last night from Mr. Eden.  The questions he puts would require a Volume to answer them in place of a Letter.  Think of it, however, and let me have your ideas upon it.  For my own part I confess myself little alarmed about what others seem so much alarmed.  I doubt much if a free trade to Ireland is so very much to be dreaded.  There is trade enough in the World for the Industry both of Britain and Ireland, and if two or three places either in South or North Britain should suffer some damage, which, by the bye, will be very gradual, from the loss of their monopoly, that is a very small consideration in the general scale and policy of the country.  The only thing to be guarded against is the people in Ireland being able to undersell us in foreign mercates from the want of taxes and the cheapness of Labour.  But a wise statesman will be able to regulate that by proper distribution of taxes upon the materials and commodities of the respective Countrys.  I believe a Union would be best if it can be accomplished; if not the Irish Parliament might be managed by the proper distribution of the Loaves and Fishes, so that the Legislatures of the two countrys may act in union together.  In short, it has long appeared to me that the bearing down of Ireland was in truth bearing down a substantial part of the Naval and Military strength of our own Country.  Indeed, it has often shocked me in the House of Commons for these two years past, when anything was hinted in favour of Ireland by friends of giving them only the benefit of making the most of what their soil and climate afforded them, to hear it received as a sufficient answer that a town in England or Scotland would be hurt by such an Indulgence.  This kind of reasoning will no longer do.  But I find, in place of asking yours, I am giving you my opinion.  So adieu.—­Yours sincerely,

     HENRY DUNDAS.

To this manly, but somewhat inconsistent letter, acknowledging the full right of a people to make the most of what their soil and climate afforded, but yet afraid to give them the whole advantage of their cheapness of labour, Smith sent the following reply, probably on the 1st of November:—­

MY DEAR LORD[305]—­I am very happy to find that Your Lordship’s opinion concerning the circumstance of granting a free trade to Ireland coincides so perfectly with my own.  I cannot believe that the manufacturers of Great Britain can for a century to come suffer much from the Rivalship of those of Ireland, even though the Irish should be indulged in a free trade.  Ireland has neither the skill nor the stock which would enable Her to rival England, and tho’ both may be acquired in time, to acquire them completely will require the opperation of little less than a Century.  Ireland has neither Coal nor wood; the former seems to have been