417.  From the evidence given, in 1808, before the Committee of the House of Commons, On Distillation from Sugar and Molasses, it appeared that, by a different mode of working from that prescribed by the Excise, the spirits from a given weight of corn, which then produced eighteen gallons, might easily have been increased to twenty gallons.  Nothing more is required for this purpose, than to make what is called the wash weaker, the consequence of which is, that fermentation goes on to a greater extent.  It was stated, however, that such a deviation would render the collection of the duty liable to great difficulties; and that it would not benefit the distiller much, since his price was enhanced to the customer by any increase of expense in the fabrication.  Here then is a case in which a quantity, amounting to one-ninth of the total produce, is actually lost to the country.  A similar effect arises in the coal trade, from the effect of a duty, for, according to the evidence before the House of Commons, it appears that a considerable quantity of the very best coal is actually wasted.  The extent of this waste is very various in different mines; but in some cases it amounts to one-third.

418.  The effects of duties upon the import of foreign manufactures are equally curious.  A singular instance occurred in the United States, where bar-iron was, on its introduction. liable to a duty of 140 per cent ad valorem, whilst hardware was charged at 25 per cent only.  In consequence of this tax, large quantities of malleable iron rails for railroads were imported into America under the denomination of hardware; the difference of 115 per cent in duty more than counter balancing the expense of fashioning the iron into rails prior to its importation.

419.  Duties, drawbacks, and bounties, when considerable in amount, are all liable to objections of a very serious nature, from the frauds to which they give rise.  It has been stated before Committees of the House of Commons, that calicoes made up in the form, and with the appearance of linen, have frequently been exported for the purpose of obtaining the bounty, for calico made up in this way sells only at 1s. 4d. per yard, whereas linen of equal fineness is worth from 2s. 8d. to 2s. 10d. per yard.  It appeared from the evidence, that one house in six months sold five hundred such pieces of calico.

In almost all cases heavy duties, or prohibitions, are ineffective as well as injurious; for unless the articles excluded are of very large dimensions, there constantly arises a price at which they will be clandestinely imported by the smuggler.  The extent, therefore, to which smuggling can be carried, should always be considered in the imposition of new duties, or in the alteration of old ones.  Unfortunately it has been pushed so far, and is so systematically conducted between this country and France, that the price per cent at which most contraband articles can be procured is perfectly well known.  From the evidence of