An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxesSteuart, James, Sir
History
An Inquiry into the Principles of Political Oeconomy (Vol. 1 of 2): Being an essay on the science of domestic policy in free nations. In which are particularly considered population, agriculture, trade, industry, money, coin, interest, circulation, banks, exchange, public credit, and taxes
Steuart, James, Sir
Economics
Here the interposition of a statesman is absolutely necessary; since
great loss may often be incurred by bringing down the price of grain in
a year of scarcity. Premiums, therefore, must be given upon importation,
until a plan can be executed for the extending of agriculture; of which
in another place. This must be gone about with the greatest
circumspection; for if grain be thereby made to fall too low, you ruin
the landed interest, and although (as we have said above) all things
soon become balanced in a trading nation, yet sudden and violent
revolutions, such as this must be, are always to be apprehended. They
are ever dangerous; and the spirit of every class of inhabitants must be
kept up.
By a discredit call upon any branch of industry, the hands employed in
it may be made to abandon it, to the great detriment of the whole. This
will infallibly happen, when violent transitions do not proceed from
natural causes, as in the example here before us, when the price of
grain is supposed to be brought down, from the increase of its quantity
by importation, and not by plenty. Because, upon the falling of the
market by importation, the poor farmer has nothing to make up for the
low price he gets for his grain; whereas, when it proceeds from plenty,
he has an additional quantity.
In years, therefore, of general scarcity, a statesman should not, by
premiums given, reduce the price of grain, but in a reciprocal
proportion to the quantity wanted: that is to say, the more grain is
wanted, the less the price should be diminished.
It may appear a very extensive project for any government to undertake
to keep down the prices of grain, in years of general scarcity. I allow
it to be politically impossible to keep prices low; because if all
Europe be taken together, the produce of the whole is consumed one year
with another, by the inhabitants; and in a year when there is a general
scarcity, it would be very hard, if not impossible, (without having
previously established a plan for this purpose) to make any nation live
in plenty while others are starving. All therefore that is proposed, is
to keep the prices of grain in as just a proportion as possible to the
plenty of the year.
Public-domain text, read in full here on John Shaqi.
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