T 1/455/347 - Lutwidge's Proposals for Regulating Trade

To the Right Honble the Lords Commissioners of His Majesty's Treasury

Proposals for Improving the Revenue and Regulating the Trade of the Isle of Man

Humbly Sheweth

The illicit Trade of the Isle of Man being almost totally extinguished, it is my Duty to Represent to your Lordships what futher Advantages seem possible to be derived from that Island by proper Regulations of its Trade and Revenue, So that the purchase thereof may be rendered still the more beneficial to his Majesty.

The present Trade of the Isle of Man with Great Britain and Ireland consists in Importing Manufactures and provisions for the Use and Consumption of the Inhabitants, And in Exporting the produce and Manufactures of the Island vizt Fish, Cattle, Hides, Linnen Cloth, which last Article hath increased very considerably since the late purchase.

The foreign Commodities Imported since that period are some Barcelona Silks antecedent to the late prohibition, Also some Wines and Fruit from Spain, a Cargo of Wines from France and another from Guernsey for the Consumption of the Island. And I am informed that a Cargo of Tobacco is soon expected from Holland, and another of Sugars from Hamburgh.

With regard to Tea and spirits the capital Articles of the late illicit Trade and now restricted to be Imported from Great Britain only, none have yet been brought into this Island since it appertained to his Majesty, Because the Inhabitants have hitherto been supplied from the old Stock of those Commodities as I observed in my Letter of the 30th of October last, and may possibly continue to be so for some little time. But with all Submission to your Lordships I beg to Observe, That considering the situation the inverterate Habits, present Circumstances and former Trade of the Isle of Man, it is by no means probable that any of those Commodities, nor certain others will ever be Imported here in a fair and legal way as things stand at present. - Before the late purchase the price of Spirits, Tea, Coffee and Tobacco were as follows.

But Charged with the British Duties, the expence of Freight &c and the Duties of that Island, those Commodities could not well be Imported from Great Britain, so as to be Sold in the Isle of Man at a reasonable profit under the following Rates

Now where such an exhorbitant profit will accrue to the Smuggler where the people are so Habituated to and expert in all the Arts of clandestine Trade and the situation so favourable it can never be supposed any of these Commodities will ever be fairly Imported, notwithstanding the utmost Vigilance of the Officers of the Revenue, and by this means the spirit of Smuggling would still be formented and kept Alive in the Isle of Man to the Expulsion of all laudable Industry, and to the prejudice of his Majesty's Revenue in his other Dominions.

From this State of things by no means aggravated it is evident that whatever Duties could be raised from the fair Imporation of the Commodities before mentioned would be so much clear Gain to the Government:- And upon this principle I humbly presume to Offer the following proposals to your Lordships consideration.

1st That a limited quantity of Tea, Spirits Coffee and Tobacco proportioned to the consumption of the Island be allowed to be Exported from Great Briatin into the Isle of Man on the same terms as the like species of Commodities are Exported to Ireland; That is drawing back the Duties in Britain on a certificate being produced within six Months that the Goods are Landed according to Bond given, and to pay on Importation a medium Duty, so calculated that there would be no temptation to Smuggle them either inwards or outwards.
With regard to the quantity of each of these Commodities that may reasonably be allowed for the use of the Inhabitants of the Isle of Man - According to an Enumeration in the Year 1757 there were 25,000 persons then resident and about the same number (notwithstanding the departure of many Families since the last Sale) may still be supposed to remain, and considering they are habituated to the use of Spirits, are much occupied at Sea in fishing &c and also the number of Seafaring people that resort to the Island 100,000 Gallons of Spirits does not seem too liberal an Allowance. Thirty thousand pounds of Tea may also be reasonably allowed, as by constant Habit it is become in a manner one of the necessities of Life even to the lowest Rank of people. Coffee, being used only at certain times by the better sort, 5,000 lb will be a sufficient Allowance. - As the people of that Island run into great Excess in the use of Tobacco they may be reasonably allowed 120,000 lb. I should rather incline to exceed than fall short in the Article as there is no Commodity runs so great a risque of being smuggled inwards from the Neighbouring coasts of Scotland, where the present price of Tobacco is from 5d to 6d per lb. Therefore it is proposed

2ndly That the Commisioners of the Customs be impowered to grant Licences for Exporting to the Isle of Man a quantity of Spirits not exceeding in the whole 100,000 gallons, of Tea not exceeding 30,000 lb - of which 3000lb or one tenth part only shall be Green Teas; Of Coffee not exceeding 5,000lb. Of Tobacco not exceeding 120,000lb - under the same Restrictions and Conditions those Commodities are allowed to be exported to Ireland.

3rdly That those Commodities pay to his Majesty on Importation into the Isle of Man the following Duty:-

If it should be objected that these Duties are too small. I beg leave to remark that this is to be attributed to the peculiar circumstances of the Island into which they are Imported, and that it is preferable to Levy a small Duty rather than none at all. - Where the profit does not exceed 50 per cent there is no temptation for the Smuggler, especially if the Officers of the Revenue are Diligent in the Execution of their Duty. - Now in the Article of Teas, the difference betwixt the full British Duties and Duties they are charged with by this Scheme is only 25 pcent upon Bohea Teas and upon Green Teas not above 20 pcent - On Spirits the Duties proposed by this Scheme are more moderate on account of the Cheap Rate they can be imported from foreign parts. But if the Legislature would be pleased to allow the Bounty upon British Spirits Exported to the Isle of Man, the far greatest part of the quanity allowed would be of that species (except when the Distillery is stopt in Britain) which would be sold so Cheap for common use as to stop any illicit Importation. - With regard to the low Duty on Tobacco, it is calculated with a view to prevent the Smuggling it as before observed from the Coasts of Scotland. But to Regulate the Importation of those Commodities, so as to prevent any abuse it is further Proposed

4thly That the whole quantity of the beforementioned species of Commodities thus allowed to be restricted to be exported from England only. Because it is with the Commissioners of the Customs in England that the Officers of the Isle of Man must correspond in order to Check the Quantity imported.

5thly That the whole of these Commodities thus allowed be Imported into the port of Douglas in the Isle of Man as being the best Harbour, the most central and considerable place, and where his Majesty's Warehouse is kept, and that a Register be kept in that port of the Quantity of each Commodity imported. Accounts to be sent quarterly to the Commissioners in London.

6thly That so much of the late Act as relates to the carrying of Spirits &c Coastwise in the Isle of Man be repealed and that Spirits and Wines in Casks of 60 Gallons each and Teas in the Original package be permitted to be carried Coastwise in Vessels of any burthen, upon Security given in treble the Value for their being Landed accordingly. - Officers of the Revenue being now fix'd in the ports of the Isle of Man, it is impossible any fraud can be committed under such Restrictions.

7thly That to Secure the Market for Spirits from Britain, no person in the Isle of Man shall Distill any Spirit for Sale from Grain or any Materials whatsoever. - This Regulation (besides the advantage now mentioned) is highly proper both for the Security of his Majesty's Revenue and the Benefit of the Inhabitants, by preventing the sustenance of the poor from being consumed in Spirits Distilled for illicit Exportation. Many Stills have lately been Erected in the Island, and as there are no Inland Duties, if they had not been Checked in their Operations by the present scarcity of Grain would before this time have become a flagrant Nuisance.

The penal Statutes of Great Britain relative to the illicit Importation and Exportation of Merchandize being now extended to the Isle of Man and (what will always be the chief Security of his Majesty's Informations on those Statutes cognizable in the Courts of Great Britain, at the same time the ports of that Island being now Guarded against a clandestine Trade by Officers stationed there, as sufficiently at least as any part of his Majesty's other Dominions, I humbly beg leave to observe that the former Reasons for denying the Bounties and Drawbacks on Goods exported thither from Britain as allowed on Goods exported to Ireland, America and foreign parts seem no longer to subsist. - Besides the consequence of refusing them this Indulgence will be, that the Traders of the Isle of Man will import from foreign parts Sugars and all such Goods as come dear from Britain on Account of the high Duties ; and under pretext of this Trade will cover Teas &c to be run ashore on the Coasts of Britain and Ireland.
Further it may not be improper to remark that all Species of Goods, entitled on Exportation from Britain to a Bounty or Drawback of the Duties of Excise, might on Importation into the Isle of Man (as the Inhabitants pay no inland Duties) be reasonably charged with a duty of 5 pcent ad Valorem by which means the whole of such Bounty or Drawback given for promoting the Exportation of British Commodities would not be sunk to the Government on the Quantity exported thither. - But according to the present Impost of the Isle of Man, refined Sugars and most other Species of Goods can be Imported from foreign parts under a Duty of little more than one pcent ad valorem. - By which means (besides losing that Market for British Commodities) not above one fifth part is raised at present upon such Goods in proportion to what might, with great propriety be raised by a new Scheme of the Duties of that Island, - provided the Inhabitants were allowed the Benefit before mentioned.

With regard to the Bounty on Corn: - If Barley and Malt were excepted, and at the same time the Distillation of Spirits totally prohibited as before proposed: With all due Submission to your Lordships, it does not appear that the allowing as formerly the Bounty on the other species of Grain Exported to the Isle of Man, could be attended with any prejudice to his Majesty's Revenue. - At the same time such Indulgence would be of considerable benefit to the Manufactures and Fisheries of the Island by furnishing provisions plentiful and cheap. So that it would not be in the power of the Landholders in such a confined place by having the command of the Markets, to extort an high price for the Necessaries of Life from such of his Majesty's Subjects as settle there on those Accounts, and by that means banish them from the Island.

It may perhaps be objected that as things stand at present this would open a Door to Fraudulent practices by giving those Islanders an opportunity of bringing in Grain with the Bounty from Great Britain, and at the same time Importing their own Grain into Britain Free of Duty. - But by laying all species of Grain imported from thence, under a Duty equal to the Bounty granted on the same species exported thither, this might be obviated without prejudice to the Isle of Man which it is evident would reap infinitely more advantage by the Bounty of Grain from Britain than by the priviledge of Importing their own Grain into Britain Duty free. Therefore it is proposed:

8thly That all Goods Exported from Great Britain to the Isle of Man, be allowed the same Bounty, Debentures and Drawbacks and under the same Restrictions and Conditions as Goods Exported to Ireland - Malt and Barley excepted.

9thly That except British Spirits as above and certain Commodities as in the Scheme annexed all species of Goods which on exportation from Great Britain are entitled to a Bounty, or Drawback the Duties of Excise there, imported from thence into the Isle of Man pay a Duty of 5 pcent ad valorem. Imported from any other part whatsover to pay 15 pcent ad valorem.

10thly That all other Goods (save those specified and defined in the preceeding Article) imported from Great Britain or Ireland pay 2.5 pcent ad valorem, - From foreign parts 15 pcent ad valorem, - ecpt certain commodities particularized per the Scheme annexed.

11thly That Wines be allowed to be re-exported on the same Conditions as mentioned in the proposals for Regulating the Trade of Guernsey, Article Five. And these and all other commodities allowed to be re-exported, Drawback the Duties on Importation is laid down in the annexed Scheme.

12th That Wool be prohibited to be Imported from all parts whatsoever, Coffee, Tobacco, Glass and Woolen Manufactures except from Britain only. Linen Cloth except from Britain and Ireland only.

13th That Wool, Woolen or Bay yarn and live Sheep be prohibited to be exported except to Britain only. - Teas, Spirits, Coffee, Tobacco, Chocolate, Glass, Salt and Coals to all parts whatsover.

14th That all Goods whatsover Shipped or Landed in the Isle of Man without Entry thereof first made at the Custom house shall be forfeited and that all persons concerned in Shipping or Exporting clandestinely any Goods prohibited to be Exported from Thence to be subjected to like forfeitures as for cladestinely Landing or Importing Teas and Spirits into the said Island.

15th That the present Import in the Isle of Man on Goods Imported or Exported be aboloshed and that the Duties here proposed be collected according to the same forms and under the same Regulations and Penalties as the Duties of the Customs are Collected in Great Britain.

Humbly Submitted
Cha Lutwidge Recr & Suvr Genl of the Isle of Man
16 Decr 1766

Notes

See the comments thereon by Customhouse Officers.