Spain, but have made the restriction that foreigners can receive all goods free of duty, but must sell only for cash, and not in exchange for other goods.

Colonial shipping is important through the trade with the Spanish and French West Indies, the English Sugar islands, and the fisheries. It deals with the regions south of Cape Finisterre, with Africa, the Canary and other islands, and in British ships with Portugal, Cadiz, Malaga, Marseilles, Leghorn and Naples, and it might deal with Turkey. It carries the surplus products of the fisheries, grain, flour, timber, sugar and rice. The trade with Portugal is restricted because all its wine must be brought by way of England, so only salt as ballast is brought back. Sugar is the only cargo which the Colonial shipping can carry and sell through Europe. England reserves the right to import and reship American products, yet it sells more than three million pounds and Ireland and Scotland two million pounds sterling of products in America. Hard money is rare in the Colonies, and is higher in price than in England. An English shilling is 18 pence colonial, as against 12 pence in sterling. A Guinea is 34 shillings, on account of its convenience for exchange for goods. Spanish pieces of eight, worth in England 4 shillings 8 pence, are worth in the Colonies 7 shillings 6 pence, and gold pistoles have fallen to 27 shillings, because they are so often filled with base metal. A credit on London costs 175 p. c., that is 1 English pound sterling 1¾ in Provincial currency, but the price rises and falls, par is 133⅓, but it often goes up to 166⅔ p. c. During the late war par was as low as 125, because England spent so much money and so much was brought over by English soldiers,—and it varies in different Colonies. The Colonies have Paper-bills, Bills of Credit and Currency, issued by the authority of the Assemblies which bind themselves to redeem them,—from £5 down to 1 shilling, but they are not good outside the Province that issues them. It is used to raise large amounts for pressing needs, as in the French War to pay the soldiers, arm and clothe and feed them in the field. Sometimes the money is raised by currency bills which are taken in payment of taxes etc. and are cancelled on return to the Treasury office. This was copied from the English Exchequer Bills introduced in the reign of William Third by Act of Parliament, but the English bills carry interest, and those of the Colonies do not. Another sort of currency is issued to meet the demand for money on loan at interest,—the current rate is 6 p. c., but these loans are made at 5 p. c., and the borrower must pay one tenth of the principal annually. Thus the Colony can supply the means of helping farmers to buy cattle, agricultural implements etc. and thus improve the land. The issues were made too freely in some Colonies, and fell 15 to 20 p. c. and even more in the market. All the Colonies used paper currency, until in some the English government restricted its issue by law to a fixed amount. The Mother Country did this to protect its trade from suffering loss. Pennsylvania restricted and regulated its issues also. The question has been much disputed as to whether such issues are advantageous or injurious, but it is still undecided. The taxes in the Colonies are very light,—in Pennsylvania and Virginia there is a tax payable in rent at a very low rate to the Proprietor in the former, to the Crown in the latter Colony, all other taxes are assessed by authority of the Assembly,—generally a land tax, of 6, 12, 18 pence up to 2½ shillings on the pound of rent, and incomes of professions and offices are taxed. There are no taxes on exports and imports or excise. There is a small light house tax on shipping. The Stamp Tax acts met universal opposition,—the Colonies claimed the right to deal with their own finances,—they had accepted all other Acts of Parliament touching their manufactures