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protection。　An　ordinary　store　or　counting…house　could　give　little

security　to　the　goods　of　the　merchants　who　trade　to　the　western

coast　of　Africa。　To　defend　them　from　the　barbarous　natives；　it　is

necessary　that　the　place　where　they　are　deposited　should　be；　in

some　measure；　fortified。　The　disorders　in　the　government　of

Indostan　have　been　supposed　to　render　a　like　precaution　necessary

even　among　that　mild　and　gentle　people；　and　it　was　under　pretence

of　securing　their　persons　and　property　from　violence　that　both

the　English　and　French　East　India　Companies　were　allowed　to　erect

the　first　forts　which　they　possessed　in　that　country。　Among　other

nations；　whose　vigorous　government　will　suffer　no　strangers　to

possess　any　fortified　place　within　their　territory；　it　may　be

necessary　to　maintain　some　ambassador；　minister；　or　counsel；　who

may　both　decide；　according　to　their　own　customs；　the　differences

arising　among　his　own　countrymen；　and；　in　their　disputes　with　the

natives；　may；　by　means　of　his　public　character；　interfere　with

more　authority；　and　afford　them　a　more　powerful　protection；　than

they　could　expect　from　any　private　man。　The　interests　of　commerce

have　frequently　made　it　necessary　to　maintain　ministers　in

foreign　countries　where　the　purposes；　either　of　war　or　alliance；

would　not　have　required　any。　The　commerce　of　the　Turkey　Company

first　occasioned　the　establishment　of　an　ordinary　ambassador　at

Constantinople。　The　first　English　embassies　to　Russia　arose

altogether　from　commercial　interests。　The　constant　interference

which　those　interests　necessarily　occasioned　between　the　subjects

of　the　different　states　of　Europe；　has　probably　introduced　the

custom　of　keeping；　in　all　neighbouring　countries；　ambassadors　or

ministers　constantly　resident　even　in　the　time　of　peace。　This

custom；　unknown　to　ancient　times；　seems　not　to　be　older　than　the

end　of　the　fifteenth　or　beginning　of　the　sixteenth　century；　that

is；　than　the　time　when　commerce　first　began　to　extend　itself　to

the　greater　part　of　the　nations　of　Europe；　and　when　they　first

began　to　attend　to　its　interests。

　　　　　It　seems　not　unreasonable　that　the　extraordinary　expense

which　the　protection　of　any　particular　branch　of　commerce　may

occasion　should　be　defrayed　by　a　moderate　tax　upon　that

particular　branch；　by　a　moderate　fine；　for　example；　to　be　paid　by

the　traders　when　they　first　enter　into　it；　or；　what　is　more

equal；　by　a　particular　duty　of　so　much　per　cent　upon　the　goods

which　they　either　import　into；　or　export　out　of；　the　particular

countries　with　which　it　is　carried　on。　The　protection　of　trade　in

general；　from　pirates　and　freebooters；　is　said　to　have　given

occasion　to　the　first　institution　of　the　duties　of　customs。　But；

if　it　was　thought　reasonable　to　lay　a　general　tax　upon　trade；　in

order　to　defray　the　expense　of　protecting　trade　in　general；　it

should　seem　equally　reasonable　to　lay　a　particular　tax　upon　a

particular　branch　of　trade；　in　order　to　defray　the　extraordinary

expense　of　protecting　that　branch。

　　　　　The　protection　of　trade　in　general　has　always　been

considered　as　essential　to　the　defence　of　the　commonwealth；　and；

upon　that　account；　a　necessary　part　of　the　duty　of　the　executive

power。　The　collection　and　application　of　the　general　duties　of

customs；　therefore；　have　always　been　left　to　that　power。　But　the

protection　of　any　particular　branch　of　trade　is　a　part　of　the

general　protection　of　trade；　a　part；　therefore；　of　the　duty　of

that　power；　and　if　nations　always　acted　consistently；　the

particular　duties　levied　for　the　purposes　of　such　particular

protection　should　always　have　been　left　equally　to　its　disposal。

But　in　this　respect；　as　well　as　in　many　others；　nations　have　not

always　acted　consistently；　and　in　the　greater　part　of　the

commercial　states　of　Europe；　particular　companies　of　merchants

have　had　the　address　to　persuade　the　legislature　to　entrust　to

them　the　performance　of　this　part　of　the　duty　of　the　sovereign；

together　with　all　the　powers　which　are　necessarily　connected　with

it。

　　　　　These　companies；　though　they　may；　perhaps；　have　been　useful

for　the　first　introduction　of　some　branches　of　commerce；　by

making；　at　their　own　expense；　an　experiment　which　the　state　might

not　think　it　prudent　to　make；　have　in　the　long　run　proved；

universally；　either　burdensome　or　useless；　and　have　either

mismanaged　or　confined　the　trade。

　　　　　When　those　companies　do　not　trade　upon　a　joint　stock；　but

are　obliged　to　admit　any　person；　properly　qualified；　upon　paying

a　certain　fine；　and　agreeing　to　submit　to　the　regulations　of　the

company；　each　member　trading　upon　his　own　stock；　and　at　his　own

risk；　they　are　called　regulated　companies。　When　they　trade　upon　a

joint　stock；　each　member　sharing　in　the　common　profit　or　loss　in

proportion　to　his　share　in　this　stock；　they　are　called　joint

stock　companies。　Such　companies；　whether　regulated　or　joint

stock；　sometimes　have；　and　sometimes　have　not；　exclusive

privileges。

　　　　　Regulated　companies　resemble；　in　every　respect；　the

corporations　of　trades　so　common　in　the　cities　and　towns　of　all

the　different　countries　of　Europe；　and　are　a　sort　of　enlarged

monopolies　of　the　same　kind。　As　no　inhabitant　of　a　town　can

exercise　an　incorporated　trade　without　first　obtaining　his

freedom　in　the　corporation；　so　in　most　cases　no　subject　of　the

state　can　lawfully　carry　on　any　branch　of　foreign　trade；　for

which　a　regulated　company　is　established；　without　first　becoming

a　member　of　that　company。　The　monopoly　is　more　or　less　strict

according　as　the　terms　of　admission　are　more　or　less　difficult；

and　according　as　the　directors　of　the　company　have　more　or　less

authority；　or　have　it　more　or　less　in　their　power　to　manage　in

such　a　manner　as　to　confine　the　greater　part　of　the　trade　to

themselves　and　their　particular　friends。　In　the　most　ancient

regulated　companies　the　privileges　of　apprenticeship　were　the

same　as　in　other　corporations；　and　entitled　the　person　who　had

served　his　time　to　a　member　of　the　company　to　become　himself　a

member；　either　without　paying　any　fine；　or　upon　paying　a　much

smaller　one　than　what　was　exacted　of　other　people。　The　usual

corporation　spirit；　wherever　the　law　does　not　restrain　it；

prevails　in　all　regulated　companies。　When　they　have　been　allowed

to　act　according　to　their　natural　genius；　they　have　always；　in

order　to　confine　the　competition　to　as　small　a　number　of　persons

as　possible；　endeavoured　to　subject　the　trade　to　many　burden　some

regulations。　When　the　law　has　restrained　them　from　doing　this；

they　have　become　altogether　useless　and　insignificant。

　　　　　The　regulated　companies　for　foreign　commerce　which　at

present　subsist　in　Great　Britain　are　the　ancient　merchant

adventurers'　company；　now　commonly　called　the　Hamburg　Company；

the　Russia　Company；　the　Eastland　Company；　the　Turkey　Company；　and

the　African　Company。

　　　　　The　terms　of　admission　into　the　Hamburg　Company　are　now　said

to　be　quite　easy；　and　the　directors　either　have　it　not　their

power　to　subject　the　trade　to　any　burdensome　restraint　or

regulations；　or；　at　least；　have　not　of　late　exercised　that　power。

It　has　not　always　been　so。　About　the　middle　of　the　last　century；

the　fine　for　admission　was　fifty；　and　at　one　time　one　hundred

pounds；　and　the　conduct　of　the　company　was　said　to　be　extremely

oppressive。　In　1643；　in　1645；　and　in　1661；　the　clothiers　and　free

traders　of　the　West　of　England　complained　of　them　to　Parliament

as　of　monopolists　who　confined　the　trade　and　oppressed　the

manufactures　of　the　country。　Though　those　complaints　produced　an

Act　of　Parliament；　they　had　probably　intimidated　the　company　so

far　as　to　oblige　them　to　reform　their　conduct。　Since　that　time；

at　least；　there　has　been　no　complaints　against　them。　By　the　10th

and　11th　of　William　III；　c。　6；　the　fine　for　admission　into　the

Russia　Company　was　reduced　to　five　pounds；　and　by　the　25th　of

Charles　II；　c。　7；　that　for　admission　into　the　Eastland　Company　to

forty　shillings；　while；　at　the　same　time；　Sweden；　Denmark；　and

Norway；　all　the　countries　on　the　north　side　of　the　Baltic；　were

exempted　from　their　exclusive　charter。　The　conduct　of　those

companies　had　probably　given　occasion　to　those　two　Acts　of

Parliament。　Before　that　time；　Sir　Josiah　Child　had　represented

both　these　and　the　Hamburg　Company　as　extremely　oppressive；　and

imputed　to　their　bad　management　the　low　state　of　the　trade　which

we　at　that　time　carried　on　to　the　countries　comprehended　within

their　respective　charters。　But　though　such　companies　may　not；　in

the　present　times；　be　very　oppressive；　they　are　certainly

altogether　useless。　To　be　merely　useless；　indeed；　is　perhaps　the

highest　eulogy　which　can　ever　justly　be　bestowed　upon　a　regulated

company；　and　all　the　three　companies　above　mentioned　seem；　in

their　present　state；　to　deserve　this　eulogy。

　　　　　The　fine　for　admission　into　the　Turkey　Company　was　formerly

twenty…five　pounds　for　all　persons　under　twenty…six　years　of　age；