Those who promise low prices upon the restrictive system, take an erroneous view of the causes which determine the prices of raw produce, and draw an incorrect inference from the experience of the first half of the last century. As I have stated in another place,(18*) a nation which very greatly gets the start of its neighbours in riches, without any peculiar natural facilities for growing corn, must necessarily submit to one of these alternatives—either a very high comparative price of grain, or a very great dependence upon other countries for it.
With regard to the specific mode of regulating the importation of corn, if the restrictive system be adopted, I am not sufficiently acquainted with the details of the subject to be able to speak with confidence. It seems to be generally agreed, that, in the actual state of things, a price of about eighty shillings a quarter(19*) would prevent our cultivation from falling back, and perhaps allow it to be progressive. But, in future, we should endeavour, if possible, to avoid all discussions about the necessity of protecting the British farmer, and securing to him a fair living profit. Such language may perhaps be allowable in a crisis like the present. But certainly the legislature has nothing to do with securing to any classes of its subjects a particular rate of profits in their different trades. This is not the province of a government; and it is unfortunate that any language should be used which may convey such an impression, and make people believe that their rulers ought to listen to the accounts of their gains and losses.
But a government may certainly see sufficient reasons for wishing to secure an independent supply of grain. This is a definite, and may be a desirable, object, of the same nature as the Navigation Act; and it is much to be wished, that this object, and not the interests of farmers and landlords, should be the ostensible, as well as the real, end which we have in view, in all our inquiries and proceedings relating to the trade in corn.
I firmly believe that, in the actual state of Europe, and under the actual circumstances of our present situation, it is our wisest policy to grow our own average supply of corn; and, in so doing, I feel persuaded that the country has ample resources for a great and continued increase of population, of power, of wealth, and of happiness.
NOTES:
1. Some of my friends were of different opinions as to the side, towards which my arguments most inclined. This I consider as a tolerably fair proof of impartiality.
2. Mercantile losses are always comparatively partial; but the present losses, occasioned by the unusual combination of low prices, and scanty produce, must inflict a severe blow upon the whole mass of cultivators. There never, perhaps, was known a year more injurious to the interests of agriculture.
3. At the same time, I certainly now very much wish that some regulation had been adopted last year. It would have saved the nation a great loss of agricultural capital, which it will take some time to recover. But it was impossible to foresee such a year as the present—such a combination, as a very bad harvest, and very low prices.
4. I have very little doubt that the value of paper in this country has already risen, norwithstanding the increased issues of the Bank. These increased issues I attribute chiefly to the great failures which have taken place among country banks, and the very great purchases which have been made for the continental markets, and, under these circumstances, increased issues might take place, accompanied even by a rise of value. But the currency has not yet recovered itself. The real exchange, during the last year, must have been greatly in our favour, although the nominal exchange is considerably against us. This shews, incontrovertibly, that our currency is still depreciated, in reference to the bullion currencies of the continent. A part, however, of this depreciation may still be owing to the value of bullion in Europe not having yet fallen to its former level.
5. Calculated at twenty-four livres the pound sterling.