Maxims and Opinions of Field-Marshal His Grace the Duke of Wellington, Selected From His Writings and Speeches During a Public Life of More Than Half a Century

by Duke of Arthur Wellesley Wellington

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The Home Market is the best.

The greatest difficulty is experienced by our manufacturers in exporting their manufactures. In some countries there is a total prohibition of them; in others there is an extremely high duty; and in all there is much competition and jealousy. The Government, in every one of those foreign countries, seems to do everything in its power to prevent the sale of British manufactures. I am convinced, if we went to the Continent, and purchased all the corn in Poland, not an additional article should we be able to force into France, Germany, Prussia, or Russia, If the merchants of this country were allowed freely to purchase grain, foreign subjects would get as much for their corn as they possibly could; but their rulers would not allow a single article of our manufactures to be imported in consequence of our being obliged to buy, or in return for our buying the grain of those countries. There is, undoubtedly, a certain quantity of manufactures in this country more than the population itself can consume, which it would be very desirable to get rid of. But, my Lords, is it exactly true, that taking foreign corn would have the effect of enabling other countries to purchase them? And even if such were the case, what are we to do with our own corn?

Now, my Lords, if the buying corn of the Pole, the Russian, or the Prussian, enable them to give high prices for our manufactures, why do not you give the same advantages to those nearer home? For my own part, I believe, after all, that the home market is our best resource, and that there we dispose of the greatest proportion of our manufactured articles. It has, and I think with truth, been stated, that two-thirds of the whole quantity of our manufactures are disposed of in this country. The whole of our woollen and the whole of our silk manufactures are consumed here; and of iron and other manufactures, a very considerable portion. I ask, then, if such profits are to be derived from an exchange with a foreign market, why do you not cultivate the home, which is admitted to be decidedly the best market of all. I think the more this matter is discussed, the more will the country see that the interests of one class of the community involve the interests of all. We are not to look merely to the interests of the cotton manufacturers, or of the iron manufacturers. That which we are bound to consider is the benefit of all; and, in my opinion, the common good will be most effectually secured, by getting the greatest quantity of provisions for the whole community,—by giving a proper remuneration to those who produce such provisions,—and thus encouraging them to do that which is most beneficial to the community at large.

March 29, 1830.

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How far the principle of Equitable Adjustment should be carried.

The noble Lord (Viscount Goderich), speaking with his usual candour on the subject of the equitable adjustment, admitted the existence of an increase of price during some years of the war generally, and consequently of public expense and of debt, to the amount of 20 per cent, in consequence of the depreciation of the currency; and he has made a calculation of a supposed equitable adjustment, founded upon his estimate of the expense of the war for some years, and of the debt created by the excess of price. It is true that there was a very large increase of prices in England during the war; that this increase of prices increased the expense of the war; and the amount of debt successively raised. But it is not true that the excess of prices was occasioned solely by the paper currency. Many other circumstances occasioned it; and in my opinion, my noble friend has admitted too much in admitting that the annual payment on account of the debt has been increased to the amount of 3,500,000 l. in consequence of the paper money circulated during the war.

Having frequently heard of an equitable adjustment, which, however, is absolutely impracticable as a measure to be applied solely to the national creditor, it has always appeared to me, that such an arrangement could be calculated only on the foundation of the difference between the currency, or the market price of gold, and the mint price of gold, at the period at which the Bank restriction was repealed, or in the year 1812. That difference was at that period about 4 per cent; or the difference between 3l. 17s. 10-1/2d., and 4l. 1s. The annual payment on account of the debt at that time, amounted to about 30,000,000 l. sterling; upon which what is called an equitable adjustment might, at that time, have been made to the amount of 5 per cent., or 1,200,000 l. In making this supposed equitable adjustment, we should have betrayed the honour of the country; we should have destroyed its credit and reputation for fair dealing, justice, and honesty; and, for this paltry diminution of the annual expense of the debt in 1819, we should have lost the advantages since acquired, as detailed to the House by my noble friend, amounting to a diminution of the annual charge of the debt, not of 1,200,000 l., but nearly of 5,500,000 l. or the interest of 150,000,000 l. of capital at 3 per cent. This is a fair calculation of the comparative advantage of what has been done, and what might have been done, by a supposed equitable adjustment.

May 6th, 1830.