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
Now if a government does not interpose, this never is the case. I shall
suppose the inhabitants of a country to consume, in a year of moderate
plenty, six millions of quarters of grain; if in a year of scarcity it
shall be found, that one million of quarters, or indeed a far less
quantity, be wanting, the five millions of quarters produced, will rise
in their price to perhaps double the ordinary value, instead of being
increased only by one fifth. But if you examine the case in countries
where trade is not well established, as in some inland provinces on the
continent, it is no extraordinary thing to see grain bearing three times
the price it is worth in ordinary years of plenty, and yet if in such a
year there were wanting six months provisions for the inhabitants of a
great kingdom, all the rest of Europe would perhaps hardly be able to
keep them from starving.
It is the fear of want, and not real want, which makes grain rise to
immoderate prices. Now as this extraordinary revolution in the rise of
it, does not proceed from a natural cause, to wit, the degree of
scarcity, but to the avarice and evil designs of men who hoard it up, it
produces as bad consequences to that part of the inhabitants of a
country employed in manufactures, as the fall of grain would produce to
the farmers, in case the prices should be, by importation, brought below
the just proportion of the quantity produced in the nation.
Besides the importation of grain, there is another way of increasing the
quantity of it very considerably, in some countries of Europe. In a year
of scarcity, could not the quantity of food be considerably augmented by
a prohibition to make malt liquors, allowing the importation of wines
and brandies; or indeed without laying any restraint upon the liberty of
the inhabitants as to malt liquors, I am persuaded that the liberty of
importing wines duty free, would, in years of scarcity, considerably
augment the quantity of subsistence.
This is not a proper place to examine the inconvenience which might
result to the revenue by such a scheme; because we are here only talking
of those expedients which might be fallen upon to preserve a balance on
foreign trade. An exchequer which is filled at the expence of this, will
not continue long in a flourishing condition.
These appear to be the most rational temporary expedients to diminish
the price of grain in years of scarcity; we shall afterwards examine the
principles upon which a plan may be laid down to destroy all
precariousness in the price of subsistence.
Precautions of another kind must be taken in years of plenty; for high
prices occasioned by exportation are as hurtful to the poor tradesman as
if they were occasioned by scarcity. And low prices occasioned by
superfluity are as hurtful to the poor husbandman as if his crop had
failed him.
Public-domain text, read in full here on John Shaqi.
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