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
tillage, and thereby to increase the quantity of corn in the home
market, it may, open the principles of a system which I shall explain
and examine hereafter, be supposed to have done something to lower the
price of that commodity the one way, as well as to raise it the other.
It is by many people supposed to have done more. In the sixty-four years
of the present century, accordingly, the average price of the quarter of
nine bushels of the best wheat, at Windsor market, appears, by the
accounts of Eton college, to have been L.2 : 0 : 6-10/32, which is about
ten shillings and sixpence, or more than five-and-twenty per cent.
cheaper than it had been during the sixty-four last years of the last
century; and about nine shillings and sixpence cheaper than is had been
during the sixteen years preceding 1636, when the discovery of the
abundant mines of America may be supposed to have produced its full
effect; and about one shilling cheaper than it had been in the
twenty-six years preceding 1620, before that discovery can well be
supposed to have produced its full effect. According to this account,
the average price of middle wheat, during these sixty-four first years
of the present century, comes out to have been about thirty-two
shillings the quarter of eight bushels.
The value of silver, therefore, seems to have risen somewhat in
proportion to that of corn during the course of the present century, and
it had probably begun to do so even some time before the end of the
last.
In 1687, the price of the quarter of nine bushels of the best wheat, at
Windsor market, was L.1 : 5 : 2, the lowest price at which it had ever
been from 1595.
In 1688, Mr Gregory King, a man famous for his knowledge in matters of
this kind, estimated the average price of wheat, in years of moderate
plenty, to be to the grower 3s. 6d. the bushel, or eight-and-twenty
shillings the quarter. The grower's price I understand to be the same
with what is sometimes called the contract price, or the price at which
a farmer contracts for a certain number of years to deliver a certain
quantity of corn to a dealer. As a contract of this kind saves the
farmer the expense and trouble of marketing, the contract price is
generally lower than what is supposed to be the average market price. Mr
King had judged eight-and-twenty shillings the quarter to be at that
time the ordinary contract price in years of moderate plenty. Before the
scarcity occasioned by the late extraordinary course of bad seasons, it
was, I have been assured, the ordinary contract price in all common
years.
Public-domain text, read in full here on John Shaqi.
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