5448. MONOPOLY, Tobacco.—[further continued] .
I have heard two objections
made to the suppression of this monopoly.
1. That it might increase the importation of
tobacco in contraband. 2. That it would lessen
the abilities of the Farmers General to make
occasional loans of money to the public treasury.
* * * With respect to the first
* * * I may observe that contraband does
not increase on lessening the temptations to it.
It is now encouraged by those who engage in
it being able to sell for sixty sous what cost
but fourteen, leaving a gain of forty-six sous.
When the price shall be reduced from sixty
to forty sous, the gain will be but twenty-six,
that is to say, a little more than one-half
of what it is at present. It does not seem a
natural consequence then, that contraband
should be increased by reducing its gain nearly
one-half. As to the second objection, if we
suppose (for elucidation and without presuming
to fix) the proportion of the farm on tobacco,
at one-eighth of the whole mass farmed,
the abilities of the Farmers General to lend
will be reduced one-eighth, that is, they can
hereafter lend only seven millions, where heretofore
they have lent eight. It is to be considered,
then, whether this eighth (or other
proportion, whatever it be) is worth the annual
sacrifice of twenty-four millions, or if a
much smaller sacrifice to other moneyed men,
will not produce the same loans of money in
the ordinary way.—
To Count de Vergennes. Washington ed. i, 389.
(P.
1785)
