Observations on the Effects of the Corn Laws, and of a Rise or Fall in the Price of Corn on the Agriculture and General Wealth of the Country — John Shaqi
Observations on the Effects of the Corn Laws, and of a Rise or Fall in the Price of Corn on the Agriculture and General Wealth of the CountryMalthus, T. R. (Thomas Robert)
History
Observations on the Effects of the Corn Laws, and of a Rise or Fall in the Price of Corn on the Agriculture and General Wealth of the Country
Malthus, T. R. (Thomas Robert)
Corn laws (Great Britain); Grain trade -- Great Britain
It may indeed occasionally happen that in an unfavourable season,
our exchanges with foreign countries may be affected by the
necessity of making unusually large purchases of corn; but this is
in itself an evil of the slightest consequence, which is soon
rectified, and in ordinary times is not more likely to happen, if
our average imports were two millions of quarters, than if, on an
average, we grew our own consumption.
The unusual demand is in this case the sole cause of the evil, and
not the average amount imported. The habit on the part of foreigners
of supplying this amount, would on the contrary rather facilitate
than impede further supplies; and as all trade is ultimately a trade
of barter, and the power of purchasing cannot be permanently
extended without an extension of the power of selling, the foreign
countries which supplied us with corn would evidently have their
power of purchasing our commodities increased, and would thus
contribute more effectually to our commercial and manufacturing
prosperity.
It has further been intimated by the friends of the corn laws, that
by growing our own consumption we shall keep the price of corn
within moderate bounds and to a certain degree steady. But this also
is an argument which is obviously not tenable; as in our actual
situation, it is only by keeping the price of corn up, very
considerably above the average of the rest of Europe, that we can
possibly be made to grow our own consumption.
A bounty upon exportation in one country, may be considered, in some
degree, as a bounty upon production in Europe; and if the growing
price of corn in the country where the bounty is granted be not
higher than in others, such a premium might obviously after a time
have some tendency to create a temporary abundance of corn and a
consequent fall in its price. But restrictions upon importation
cannot have the slightest tendency of this kind. Their whole effect
is to stint the supply of the general market, and to raise, not to
lower, the price of corn.
Nor is it in their nature permanently to secure what is of more
consequence, steadiness of prices. During the period indeed, in
which the country is obliged regularly to import some foreign grain,
a high duty upon it is effectual in steadily keeping up the price of
home corn, and giving a very decided stimulus to agriculture. But as
soon as the average supply becomes equal to the average consumption,
this steadiness ceases. A plentiful year will occasion a sudden
fall; and from the average price of the home produce being so much
higher than in the other markets of Europe, such a fall can be but
little relieved by exportation. It must be allowed, that a free
trade in corn would in all ordinary cases not only secure a cheaper,
but a more steady, supply of grain.
To counterbalance these striking advantages of a free trade in corn,
what are the evils which are apprehended from it?
Public-domain text, read in full here on John Shaqi.
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