of merchandise in exchange for them, it would be an unpromising expedient.  It would only commit the exports, as well as imports, between France and America, to a monopoly, which, being secure against rivals in the sale of the merchandise of France, would not be likely to sell at such moderate prices as might encourage its consumption there, and enable it to bear a competition with similar articles from other countries.  I am persuaded this exportation of coin may be prevented, and that of commodities effected, by leaving both operations to the French and American merchants, instead of the Farmers General.  They will import a sufficient quantity of tobacco, if they are allowed a perfect freedom in the sale; and they will receive in payment, wines, oils, brandies, and manufactures, instead of coin; forcing each other, by their competition, to bring tobaccos of the best quality; to give to the French manufacturer the full worth of his merchandise; and to sell to the American consumer at the lowest price they can afford; thus encouraging him to use, in preference, the merchandise of this country.

It is not necessary that this exchange should be favored by any loss of revenue to the King.  I do not mean to urge any thing which shall injure either his Majesty or his people.  On the contrary, the measure I have the honor of proposing, will increase his revenue, while it places both the seller and buyer on a better footing.  It is not for me to say, what system of collection may be best adapted to the organization of this government; nor whether any useful hints may be taken from the practice of that country, which has heretofore been the principal entrepot for this commodity.  Their system is simple and little expensive.  The importer there, pays the whole duty to the King:  and as this would be inconvenient for him to do before he has sold his tobacco, he is permitted, on arrival, to deposite it in the King’s warehouse, under the locks of the King’s officer.  As soon as he has sold it, he goes with the purchaser to the warehouse; the money is there divided between the King and him, to each his proportion, and the purchaser takes out the tobacco.  The payment of the King’s duty is thus ensured in ready money.  What is the expense of its collection, I cannot say; but it certainly need not exceed six livres a hogshead of one thousand pounds.  That government levies a higher duty on tobacco than is levied here.  Yet so tempting and so valuable is the perfect liberty of sale, that the merchant carries it there and finds his account in doing so.

If, by a simplification of the collection of the King’s duty on tobacco, the cost of that collection can be reduced even to five per cent., or a million and a half, instead of twenty-five millions; the price to the consumer will be reduced from three to two livres the pound.  For thus I calculate.

The cost, manufacture, and revenue, on twenty-four million pounds

of tobacco being (as before stated)................46,800,000 livres.

Five per cent, on thirty millions of livres,