We must, however, recognise that there are a few economists fully aware of the above truths. They gladly admit that Western Europe could grow much more food than it does; but they see no necessity nor advantage in doing so, as long as there are nations which can supply food in exchange for manufactured goods. Let us then examine how far this view is correct.
It is obvious that if we are satisfied with merely stating that it is cheaper to bring wheat from Riga than to grow it in Lincolnshire, the whole question is settled in a moment. But is it so in reality? Is it really cheaper to have food from abroad? And, supposing it is, are we not yet bound to analyse that compound result which we call price, rather than to accept it as a supreme and blind ruler of our actions?
We know, for instance, how French agriculture is burdened by taxation. And yet, if we compare the prices of articles of food in France, which herself grows most of them, with the prices in this country, which imports them, we find no difference in favour of the importing country. On the contrary, the balance is rather in favour of France, and it decidedly was so for wheat until the new protective tariff was introduced. As soon as one goes out of Paris, one finds that every home produce is cheaper in France than it is in England, and that the prices decrease further when we go farther East on the Continent.
There is another feature still more unfavourable for this country: namely, the enormous development of the class of middlemen who stand between the importer and the home producer on the one side and the consumer on the other. We have lately heard a good deal about the quite disproportionate part of the prices we pay which goes into the middleman’s pockets. We have all heard of the East-end clergyman who was compelled to become butcher in order to save his parishioners from the greedy middleman. We read in the papers that many farmers of the midland counties do not realise more than 9d. for a pound of butter, while the customer pays from 1s. 6d. to 1s. 8d.; and that from 1½d. to 2d. for the quart of milk is all that the Cheshire farmers can get, while we pay 4d. for the adulterated, and 5d. for the unadulterated milk. An analysis of the Covent Garden prices and a comparison of the same with retail prices, which is being made from time to time in the daily papers, proves that the customer pays for vegetables at the rate of 6d. to 1s., and sometimes more, for each penny realised by the grower. But in a country of imported food it must be so: the grower who himself sells his own produce disappears from its markets, and in his place appears the middleman.[64] If we move, however, towards the East, and go to Belgium, Germany, and Russia, we find that the cost of living is more and more reduced, so that finally we find that in Russia, which remains still agricultural, wheat costs one-half or two-thirds of its London prices, and meat is sold throughout the provinces at about ten farthings (kopecks) the pound. And we may therefore hold that it is not yet proved at all that it is cheaper to live on imported food than to grow it ourselves.
But if we analyse price, and make a distinction between its different elements, the disadvantage becomes still more apparent. If we compare, for instance, the costs of growing wheat in this country and in Russia, we are told that in the United Kingdom the hundredweight of wheat cannot be grown at less than 8s. 7d.; while in Russia the costs of production of the same hundredweight are estimated at from 3s. 6d. to 4s. 9d.[65] The difference is enormous, and it would still remain very great even if we admit that there is some exaggeration in the former figure. But why this difference? Are the Russian labourers paid so much less for their work? Their money wages surely are much lower, but the difference is equalised as soon as we reckon their wages in produce. The twelve shillings a week of the British agricultural labourer represents the same amount of wheat in Britain as the six shillings a week of the Russian labourer represents in Russia. As to the supposed prodigious fertility of the soil in the Russian prairies, it is a fallacy. Crops of from sixteen to twenty-three bushels per acre are considered good crops in Russia, while the average hardly reaches thirteen bushels, even in the corn-exporting parts of the empire. Besides, the amount of labour which is necessary to grow wheat in Russia with no thrashing-machines, with a plough dragged by a horse hardly worth the name, with no roads for transport, and so on, is certainly much greater than the amount of labour which is necessary to grow the same amount of wheat in Western Europe.
When brought to the London market, Russian wheat was sold in 1887 at 31s. the quarter, while it appeared from the same Mark Lane Express figures that the quarter of wheat could not be grown in this country at less than 36s. 8d., even if the straw be sold, which is not always the case. But the difference of the land rent in both countries would alone account for the difference of prices. In the wheat belt of Russia, where the average rent stood at about 12s. per acre, and the crop was from fifteen to twenty bushels, the rent amounted to from 3s. 6d. to 5s. 8d. in the costs of production of each quarter of Russian wheat; while in this country, where the rent and taxes are valued (in the Mark Lane Express figures) at no less than 40s. per each wheat-growing acre, and the crop is taken at thirty bushels, the rent amounts to 10s. in the costs of production of each quarter.[66] But even if we take only 30s. per acre of rent and taxes, and an average crop of twenty-eight bushels, we still have 8s. 8d. out of the sale price of each quarter of wheat, which goes to the landlord and the State. If it costs so much more in money to grow wheat in this country, while the amount of labour is so much less in this country than in Russia, it is due to the very great height of the land rents attained during the years 1860-1880. But this growth itself was due to the facilities for realising large profits on the sale of manufactured goods abroad. The false condition of British rural economy, not the infertility of the soil, is thus the chief cause of the Russian competition.
Twenty-five years have passed since I wrote these lines—the agricultural crisis provoked by the competition of cheap American wheat being at that time at its climax, and, I am sorry to say, I must leave these lines such as they were written. I do not mean, of course, that no adaptation to the new conditions created by the fall in the prices of wheat should have taken place during the last quarter of a century, in the sense of a more intensive culture and a better utilisation of the land. On the contrary, I mention in different parts of this book the progress accomplished of late in the development of separate branches of intensive culture, such as fruit-culture, market-gardening, culture under glass, French gardening, and poultry farming, and I also indicate the different steps taken to promote further improvements, such as better conditions of transport, co-operation among the farmers, and especially the development of small holdings.
However, after having taken into account all these improvements, one cannot but see with regret that the same regressive movement in British agriculture, which began in the ’seventies, continues still; and while more and more of the land that was once under the plough goes out of culture, no corresponding increase in the quantities of live stock is to be seen. And if we consult the mass of books and review articles which have been dealing lately with this subject, we see that all the writers recognise that British agriculture must adapt itself to the new conditions by a thorough reform of its general character; and yet the same writers recognise that only a few steps were taken till now in the proper direction, and none of them was taken with a sufficient energy. Society at large remains indifferent to the needs of British agriculture.
It must not be forgotten that the competition of American wheat has made the same havoc in the agriculture of most European countries—especially in France and Belgium; but in the last two countries the adaptations which were necessary to resist the effects of the competition have already taken place to a great extent. Both in Belgium and in France the American imports gave a new impetus toward a more intensive utilisation of the soil, and this impetus was strongest in Belgium, where no attempt was made to protect agriculture by an increase of the import duties, as was the case in France. On the contrary, the duties upon imported wheat were abolished in Belgium precisely at the time when the American competition began to be felt—that is, between 1870 and 1880.