An Inquiry Into the Nature and Causes of the Wealth of NationsSmith, Adam
General
An Inquiry Into the Nature and Causes of the Wealth of Nations
Smith, Adam
Economics
The first of these events was the civil war, which, by discouraging
tillage and interrupting commerce, must have raised the price of corn
much above what the course of the seasons would otherwise have
occasioned. It must have had this effect, more or less, at all the
different markets in the kingdom, but particularly at those in the
neighborhood of London, which require to be supplied from the greatest
distance. In 1648, accordingly, the price of the best wheat, at Windsor
market, appears, from the same accounts, to have been L.4 : 5s., and, in
1649, to have been L.4, the quarter of nine bushels. The excess of those
two years above L.2 10s. (the average price of the sixteen years
preceding 1637) is L.3 5s., which, divided among the sixty-four last
years of the last century, will alone very nearly account for that small
enhancement of price which seems to have taken place in them. These,
however, though the highest, are by no means the only high prices which
seem to have been occasioned by the civil wars.
The second event was the bounty upon the exportation of corn, granted in
1688. The bounty, it has been thought by many people, by encouraging
tillage, may, in a long course of years, have occasioned a greater
abundance, and, consequently, a greater cheapness of corn in the home
market, than what would otherwise have taken place there. How far the
bounty could produce this effect at any time I shall examine hereafter:
I shall only observe at present, that between 1688 and 1700, it had not
time to produce any such effect. During this short period, its only
effect must have been, by encouraging the exportation of the surplus
produce of every year, and thereby hindering the abundance of one year
from compensating the scarcity of another, to raise the price in the
home market. The scarcity which prevailed in England, from 1693 to 1699,
both inclusive, though no doubt principally owing to the badness of the
seasons, and, therefore, extending through a considerable part of
Europe, must have been somewhat enhanced by the bounty. In 1699,
accordingly, the further exportation of corn was prohibited for nine
months.
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