For those still unconvinced [by arguments for drug legalization], there is one instructive historical parallel apart from the notorious example of Prohibition. In 1784 Pitt introduced his Commutation Act, which lowered the duty on tea from 112 per cent to 25 per cent. By doing so he finally admitted that an enormously expensive repressive apparatus—public executions, a massive increase in the number of Customs and Excise men, the occupation of coastal towns by Army units, coastal patrols by the Royal Navy and a series of pitched battles with smuggling gangs all over England—would never prevent smugglers supplying the needs of consumers so long as the tax system ensured that the trade remained hugely profitable. The eighteenth-century smugglers were defeated in the end by the price mechanism, not the machinery of State repression. The same fate awaits the drug barons and dope dealers, if the State has the courage to admit its own impotence.
—“The Legalisation of Drugs,” A chapter from the hardback version of Saturn’s Children, the great British libertarian manifesto of 1995, by then-and-still Tory MP Alan Duncan and Dominic Hobson. Read more about the Commutation Act here.