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doubled. This consideration is in itself alone fatal, in my opinion, to the adoption of the bonded warehouse system.
If on the other hand
7.
we were to adopt the other alternative, and revert to the issue of licences, it is equally certain that the change would result in a vast increase in consumption. It is true that it would be to the interest of all the licensees to prevent smuggling into the island, and if they were loyally to combine for this purpose they might succeed in organising as effective a preventive service as that of the farmer. In that case they would by the thorough prevention of smuggling be in a position to charge as high a price for their opium, if it were their interest to do so, as that charged by the farmer. But it is hardly necessary to point out that it would be the