Fair Trade and the Political Economy of Brandy Smuggling in Early Eighteenth-Century Britain*

Abstract

Abstract Thomas Ellis, merchant of London, never expected he would be prosecuted for participating in one of the largest commercial frauds of his time. So when the Customs seized his brandy in 1731 he fought back. His case would influence parliamentary decision-making and reveal the extensive involvement of merchants in illicit trade. Ellis’s argument that he was merely a ‘fair trader’ also illuminates the moral debate over smuggling during the period as governments sought to legitimize and enforce their trading rules and tariffs. Pressured by competition from professional smugglers and the revenue demands of the state, merchants responded by developing their own rules by which they could fairly compete. Ellis’s story, and the ‘Flemish scheme’ it exposed, thereby shed light on the moral economy of early modern capitalism, the history of smuggling, and the dynamic of market ordering by increasingly assertive states.