secondly,fifty—eightquartersofmalt,whichcostseventeenpoundstenshillings,orsixshillingsaquarter,equaltoabouteighteenshillingsofourpresentmoney;thirdly,twentyquartersofoats,whichcostfourpounds,orfourshillingsaquarter,equaltoabouttwelveshillingsofourpresentmoney。Thepricesofmaltandoatsseemheretobehigherthantheirordinaryproportiontothepriceofwheat。
Thesepricesarenotrecordedonaccountoftheirextraordinarydearnessorcheapness,butarementionedaccidentallyasthepricesactuallypaidforlargequantitiesofgrainconsumedatafeastwhichwasfamousforitsmagnificence。
In1262,beingthe51stofHenryM,wasrevivedanancientstatutecalledTheAssizeofBreadandAle,whichthekingsaysinthepreamblehadbeenmadeinthetimesofhisprogenitors,sometimekingsofEngland。Itisprobably,therefore,asoldatleastasthetimeofhisgrandfatherHenryH,andmayhavebeenasoldastheConquest。Itregulatesthepriceofbreadaccordingasthepricesofwheatmayhappentobe,fromoneshillingtotwentyshillingsthequarterofthemoneyofthosetimes。Butstatutesofthiskindaregenerallypresumedtoprovidewithequalcareforalldeviationsfromthemiddleprice,forthosebelowitaswellasforthoseaboveit。Tenshillings,therefore,containingsixouncesofsilver,Towerweight,andequaltoaboutthirtyshillingsofourpresentmoney,must,uponthissupposition,havebeenreckonedthemiddlepriceofthequarterofwheatwhenthisstatutewasfirstenacted,andmusthavecontinuedtobesointhe51stofHenryIII。Wecannotthereforebeverywronginsupposingthatthemiddlepricewasnotlessthanone—thirdofthehighestpriceatwhichthisstatuteregulatesthepriceofbread,orthansixshillingsandeightpenceofthemoneyofthosetimes,containingfourouncesofsilver,Towerweight。
Fromthesedifferentfacts,therefore,weseemtohavesomereasontoconcludethat,aboutthemiddleofthefourteenthcentury,andforaconsiderabletimebefore,theaverageorordinarypriceofthequarterofwheatwasnotsupposedtobelessthanfourouncesofsilver,Towerweight。
Fromaboutthemiddleofthefourteenthtothebeginningofthesixteenthcentury,whatwasreckonedthereasonableandmoderate,thatistheordinaryoraveragepriceofwheat,seemstohavesunkgraduallytoaboutone—halfofthisprice;soasatlasttohavefallentoabouttwoouncesofsilver,Towerweight,equaltoabouttenshillingsofourpresentmoney。Itcontinuedtobeestimatedatthispricetillabout1570。
InthehouseholdbookofHenry,thefifthEarlofNorthumberland,drawnupin1512,therearetwodifferentestimationsofwheat。Inoneofthemitiscomputedatsixshillingsandeightpencethequarter,intheotheratfiveshillingsandeightpenceonly。In1512,sixshillingsandeightpencecontainedonlytwoouncesofsilver,Towerweight,andwereequaltoabouttenshillingsofourpresentmoney。
Fromthe25thofEdwardIIItothebeginningofthereignofElizabeth,duringthespaceofmorethantwohundredyears,sixshillingsandeightpence,itappearsfromseveraldifferentstatutes,hadcontinuedtobeconsideredaswhatiscalledthemoderateandreasonable,thatistheordinaryoraveragepriceofwheat。Thequantityofsilver,however,containedinthatnominalsumwas,duringthecourseofthisperiod,continuallydiminishing,inconsequenceofsomealterationswhichweremadeinthecoin。Buttheincreaseofthevalueofsilverhad,itseems,sofarcompensatedthediminutionofthequantityofitcontainedinthesamenominalsumthatthelegislaturedidnotthinkitworthwhiletoattendtothiscircumstance。
Thusin1436itwasenactedthatwheatmightbeexportedwithoutalicencewhenthepricewassolowassixshillingsandeightpence;andin1463itwasenactedthatnowheatshouldbeimportedifthepricewasnotabovesixshillingsandeightpencethequarter。Thelegislaturehadimaginedthatwhenthepricewassolowtherecouldbenoinconveniencyinexportation,butthatwhenitrosehigheritbecameprudenttoallowimportation。Sixshillingsandeightpence,therefore,containingaboutthesamequantityofsilverasthirteenshillingsandfourpenceofourpresentmoney(onethirdpartlessthanthesamenominalsumcontainedinthetimeofEdwardIII),hadinthosetimesbeenconsideredaswhatiscalledthemoderateandreasonablepriceofwheat。
In1554,bythe1stand2ndofPhilipandMary;andin1558,bythe1stofElizabeth,theexportationofwheatwasinthesamemannerprohibited,wheneverthepriceofthequartershouldexceedsixshillingsandeightpence,whichdidnotthencontaintwopennyworthmoresilverthanthesamenominalsumdoesatpresent。Butithadsoonbeenfoundthattorestraintheexportationofwheattillthepricewassoverylowwas,inreality,toprohibititaltogether。In1562,therefore,bythe5thofElizabeth,theexportationofwheatwasallowedfromcertainportswheneverthepriceofthequartershouldnotexceedtenshillings,containingnearlythesamequantityofsilverasthelikenominalsumdoesatpresent。Thispricehadatthistime,therefore,beenconsideredaswhatiscalledthemoderateandreasonablepriceofwheat。ItagreesnearlywiththeestimationoftheNorthumberlandbookin1512。
ThatinFrancetheaveragepriceofgrainwas,inthesamemanner,muchlowerintheendofthefifteenthandbeginningofthesixteenthcenturythaninthetwocenturiesprecedinghasbeenobservedbothbyMr。DupredeSt。Maur,andbytheelegantauthoroftheEssayonthepoliceofgrain。Itsprice,duringthesameperiod,hadprobablysunkinthesamemannerthroughthegreaterpartofEurope。
Thisriseinthevalueofsilverinproportiontothatofcorn,mayeitherhavebeenowingaltogethertotheincreaseofthedemandforthatmetal,inconsequenceofincreasingimprovementandcultivation,thesupplyinthemeantimecontinuingthesameasbefore;or,thedemandcontinuingthesameasbefore,itmayhavebeenowingaltogethertothegradualdiminutionofthesupply;thegreaterpartofthemineswhichwerethenknownintheworldbeingmuchexhausted,andconsequentlytheexpenseofworkingthemmuchincreased;oritmayhavebeenowingpartlytotheotherofthosetwocircumstances。Intheendofthefifteenthandbeginningofthesixteenthcenturies,thegreaterpartofEuropewasapproachingtowardsamoresettledformofgovernmentthanithadenjoyedforseveralagesbefore。Theincreaseofsecuritywouldnaturallyincreaseindustryandimprovement;andthedemandforthepreciousmetals,aswellasforeveryotherluxuryandornament,wouldnaturallyincreasewiththeincreaseofriches。Agreaterannualproducewouldrequireagreaterquantityofcointocirculateit;andagreaternumberofrichpeoplewouldrequireagreaterquantityofplateandotherornamentsofsilver。Itisnaturaltosuppose,too,thatthegreaterpartofthemineswhichthensuppliedtheEuropeanmarketwithsilvermightbeagooddealexhausted,andhavebecomemoreexpensiveintheworking。
TheyhadbeenwroughtmanyofthemfromthetimeoftheRomans。
Ithasbeentheopinion,however,ofthegreaterpartofthosewhohavewrittenuponthepriceofcommoditiesinancienttimesthat,fromtheConquest,perhapsfromtheinvasionofJuliusCaesartillthediscoveryoftheminesofAmerica,thevalueofsilverwascontinuallydiminishing。Thisopiniontheyseemtohavebeenledinto,partlybytheobservationswhichtheyhadoccasiontomakeuponthepricesbothofcornandofsomeotherpartsoftherudeproduceofland;andpartlybythepopularnotionthatasthequantityofsilvernaturallyincreasesineverycountrywiththeincreaseofwealth,soitsvaluediminishesasitsquantityincreases。
Intheirobservationsuponthepricesofcorn,threedifferentcircumstancesseemfrequentlytohavemisledthem。
First,inancienttimesalmostallrentswerepaidinkind;
inacertainquantityofcorn,cattle,poultry,etc。Itsometimeshappened,however,thatthelandlordwouldstipulatethatheshouldbeatlibertytodemandofthetenant,eithertheannualpaymentinkind,oracertainsumofmoneyinsteadofit。ThepriceatwhichthepaymentinkindwasinthismannerexchangedforacertainsumofmoneyisinScotlandcalledtheconversionprice。Astheoptionisalwaysinthelandlordtotakeeitherthesubstanceortheprice,itisnecessaryforthesafetyofthetenantthattheconversionpriceshouldratherbebelowthanabovetheaveragemarketprice。Inmanyplaces,accordingly,itisnotmuchaboveone—halfofthisprice。ThroughthegreaterpartofScotlandthiscustomstillcontinueswithregardtopoultry,andinsomeplaceswithregardtocattle。Itmightprobablyhavecontinuedtotakeplace,too,withregardtocorn,hadnottheinstitutionofthepublicfiarsputanendtoit。
Theseareannualvaluations,accordingtothejudgmentofanassize,oftheaveragepriceofallthedifferentsortsofgrain,andofallthedifferentqualitiesofeach,accordingtotheactualmarketpriceineverydifferentcounty。Thisinstitutionrendereditsufficientlysafeforthetenant,andmuchmoreconvenientforthelandlord,toconvert,astheycallit,thecornrent,ratheratwhatshouldhappentobethepriceofthefiarsofeachyear,thanatanycertainfixedprice。ButthewriterswhohavecollectedthepricesofcorninancienttimesseemfrequentlytohavemistakenwhatiscalledinScotlandtheconversionpricefortheactualmarketprice。Fleetwoodacknowledges,upononeoccasion,thathehadmadethismistake。
Ashewrotehisbook,however,foraparticularpurpose,hedoesnotthinkpropertomakethisacknowledgmenttillaftertranscribingthisconversionpricefifteentimes。Thepriceiseightshillingsthequarterofwheat。Thissumin1423,theyearatwhichhebeginswithit,containedthesamequantityofsilverassixteenshillingsofourpresentmoney。Butin1562,theyearatwhichheendswithit,itcontainednomorethanthesamenominalsumdoesatpresent。
Secondly,theyhavebeenmisledbytheslovenlymannerinwhichsomeancientstatutesofassizehadbeensometimestranscribedbylazycopiers;andsometimesperhapsactuallycomposedbythelegislature。
Theancientstatutesofassizeseemtohavebegunalwayswithdeterminingwhatoughttobethepriceofbreadandalewhenthepriceofwheatandbarleywereatthelowest,andtohaveproceededgraduallytodeterminewhatitoughttobe,accordingasthepricesofthosetwosortsofgrainshouldgraduallyriseabovethislowestprice。Butthetranscribersofthosestatutesseemfrequentlytohavethoughtitsufficienttocopytheregulationasfarasthethreeorfourfirstandlowestprices,savinginthismannertheirownlabour,andjudging,Isuppose,thatthiswasenoughtoshowwhatproportionoughttobeobservedinallhigherprices。
ThusintheAssizeofBreadandAle,ofthe51stofHenryIII,thepriceofbreadwasregulatedaccordingtothedifferentpricesofwheat,fromoneshillingtotwentyshillingsthequarter,ofthemoneyofthosetimes。Butinthemanuscriptsfromwhichallthedifferenteditionsofthestatutes,precedingthatofMr。Ruffhead,wereprinted,thecopiershadnevertranscribedthisregulationbeyondthepriceoftwelveshillings。Severalwriters,therefore,beingmisledbythisfaultytranscription,verynaturallyconcludedthatthemiddleprice,orsixshillingsthequarter,equaltoabouteighteenshillingsofourpresentmoney,wastheordinaryoraveragepriceofwheatatthattime。
IntheStatuteofTumbrelandPillory,enactednearlyaboutthesametime,thepriceofaleisregulatedaccordingtoeverysixpenceriseinthepriceofbarley,fromtwoshillingstofourshillingsthequarter。Thatfourshillings,however,wasnotconsideredasthehighestpricetowhichbarleymightfrequentlyriseinthosetimes,andthatthesepriceswereonlygivenasanexampleoftheproportionwhichoughttobeobservedinallotherprices,whetherhigherorlower,wemayinferfromthelastwordsofthestatute:etsicdeincepscresceturveldiminueturpersexdenarios。Theexpressionisveryslovenly,butthemeaningisplainenough:\"Thatthepriceofaleisinthismannertobeincreasedordiminishedaccordingtoeverysixpenceriseorfallinthepriceofbarley。\"Inthecompositionofthisstatutethelegislatureitselfseemstohavebeenasnegligentasthecopierswereinthetranscriptionoftheothers。
InanancientmanuscriptoftheRegiamMajestatem,anoldScotchlawbook,thereisastatuteofassizeinwhichthepriceofbreadisregulatedaccordingtoallthedifferentpricesofwheat,fromtenpencetothreeshillingstheScotchboll,equaltoabouthalfanEnglishquarter。ThreeshillingsScotch,atthetimewhenthisassizeissupposedtohavebeenenactedwereequaltoaboutnineshillingssterlingofourpresentmoney。Mr。
Ruddimanseemstoconcludefromthis,thatthreeshillingswasthehighestpricetowhichwheateverroseinthosetimes,andthattenpence,ashilling,oratmosttwoshillings,weretheordinaryprices。Uponconsultingthemanuscript,however,itappearsevidentlythatallthesepricesareonlysetdownasexamplesoftheproportionwhichoughttobeobservedbetweentherespectivepricesofwheatandbread。Thelastwordsofthestatuteare:reliquajudicabissecundumproescriptahabendorespectumadpretiumbladi。\"Youshalljudgeoftheremainingcasesaccordingtowhatisabovewritten,havingarespecttothepriceofcorn。\"
Thirdly,theyseemtohavebeenmisled,too,bytheverylowpriceatwhichwheatwassometimessoldinveryancienttimes;
andtohaveimaginedthatasitslowestpricewasthenmuchlowerthaninlatertimes,itsordinarypricemustlikewisehavebeenmuchlower。Theymighthavefound,however,thatinthoseancienttimesitshighestpricewasfullyasmuchabove,asitslowestpricewasbelowanythingthathadevenbeenknowninlatertimes。
Thusin1270,Fleetwoodgivesustwopricesofthequarterofwheat。Theoneisfourpoundssixteenshillingsofthemoneyofthosetimes,equaltofourteenpoundseightshillingsofthatofthepresent;theotherissixpoundseightshillings,equaltonineteenpoundsfourshillingsofourpresentmoney。Nopricecanbefoundintheendofthefifteenth,orbeginningofthesixteenthcentury,whichapproachestotheextravaganceofthese。
Thepriceofcorn,thoughatalltimesliabletovariation,variesmostinthoseturbulentanddisorderlysocieties,inwhichtheinterruptionofallcommerceandcommunicationhinderstheplentyofonepartofthecountryfromrelievingthescarcityofanother。InthedisorderlystateofEnglandunderthePlantagenets,whogoverneditfromaboutthemiddleofthetwelfthtilltowardstheendofthefifteenthcentury,onedistrictmightbeinplenty,whileanotheratnogreatdistance,byhavingitscropdestroyedeitherbysomeaccidentoftheseasons,orbytheincursionofsomeneighbouringbaron,mightbesufferingallthehorrorsofafamine;andyetifthelandsofsomehostilelordwereinterposedbetweenthem,theonemightnotbeabletogivetheleastassistancetotheother。UnderthevigorousadministrationoftheTudors,whogovernedEnglandduringthelatterpartofthefifteenthandthroughthewholeofthesixteenthcentury,nobaronwaspowerfulenoughtodaretodisturbthepublicsecurity。
ThereaderwillfindattheendofthischapterallthepricesofwheatwhichhavebeencollectedbyFleetwoodfrom1202
to1597,bothinclusive,reducedtothemoneyofthepresenttimes,anddigestedaccordingtotheorderoftime,intosevendivisionsoftwelveyearseach。Attheendofeachdivision,too,hewillfindtheaveragepriceofthetwelveyearsofwhichitconsists。Inthatlongperiodoftime,Fleetwoodhasbeenabletocollectthepricesofnomorethaneightyyears,sothatfouryearsarewantingtomakeoutthelasttwelveyears。Ihaveadded,therefore,fromtheaccountsofEtoncollege,thepricesof1598,1599,1600,and1601。ItistheonlyadditionwhichI
havemade。Thereaderwillseethatfromthebeginningofthethirteenthtillafterthemiddleofthesixteenthcenturytheaveragepriceofeachtwelveyearsgrowsgraduallylowerandlower;andthattowardstheendofthesixteenthcenturyitbeginstoriseagain。Theprices,indeed,whichFleetwoodhasbeenabletocollect,seemtohavebeenthosechieflywhichwereremarkableforextraordinarydearnessorcheapness;andIdonotpretendthatanyverycertainconclusioncanbedrawnfromthem。
Sofar,however,astheyproveanythingatall,theyconfirmtheaccountwhichIhavebeenendeavouringtogive。Fleetwoodhimself,however,seems,withmostotherwriters,tohavebelievedthatduringallthisperiodthevalueofsilver,inconsequenceofitsincreasingabundance,wascontinuallydiminishing。Thepricesofcornwhichhehimselfhascollectedcertainlydonotagreewiththisopinion。TheyagreeperfectlywiththatofMr。DupredeSt。Maur,andwiththatwhichIhavebeenendeavouringtoexplain。BishopFleetwoodandMr。DupredeSt。Maurarethetwoauthorswhoseemtohavecollected,withthegreatestdiligenceandfidelity,thepricesofthingsinancienttimes。Itissomewhatcuriousthat,thoughtheiropinionsaresoverydifferent,theirfacts,sofarastheyrelatetothepriceofcornatleast,shouldcoincidesoveryexactly。
Itisnot,however,somuchfromthelowpriceofcornasfromthatofsomeotherpartsoftherudeproduceoflandthatthemostjudiciouswritershaveinferredthegreatvalueofsilverinthoseveryancienttimes。Corn,ithasbeensaid,beingasortofmanufacture,was,inthoserudeages,muchdearerinproportionthanthegreaterpartofothercommodities;itismeant,Isuppose,thanthegreaterpartofunmanufacturedcommodities,suchascattle,poultry,gameofallkinds,etc。
Thatinthosetimesofpovertyandbarbarismthesewereproportionablymuchcheaperthancornisundoubtedlytrue。Butthischeapnesswasnottheeffectofthehighvalueofsilver,butofthelowvalueofthosecommodities。Itwasnotbecausesilverwouldinsuchtimespurchaseorrepresentagreaterquantityoflabour,butbecausesuchcommoditieswouldpurchaseorrepresentamuchsmallerquantitythanintimesofmoreopulenceandimprovement。SilvermustcertainlybecheaperinSpanishAmericathaninEurope;inthecountrywhereitisproducedthaninthecountrytowhichitisbrought,attheexpenseofalongcarriagebothbylandandbysea,ofafreightandaninsurance。One—and—twentypencehalfpennysterling,however,wearetoldbyUlloa,was,notmanyyearsago,atBuenosAyres,thepriceofanoxchosenfromaherdofthreeorfourhundred。Sixteenshillingssterling,wearetoldbyMr。ByronwasthepriceofagoodhorseinthecapitalofChili。Inacountrynaturallyfertile,butofwhichthefargreaterpartisaltogetheruncultivated,cattle,poultry,gameofallkinds,etc。,astheycanbeacquiredwithaverysmallquantityoflabour,sotheywillpurchaseorcommandbutaverysmallquantity。Thelowmoneypriceforwhichtheymaybesoldisnoproofthattherealvalueofsilveristhereveryhigh,butthattherealvalueofthosecommoditiesisverylow。
Labour,itmustalwaysberemembered,andnotanyparticularcommodityorsetofcommodities,istherealmeasureofthevaluebothofsilverandofallothercommodities。
Butincountriesalmostwaste,orbutthinlyinhabited,cattle,poultry,gameofallkinds,etc。,astheyarethespontaneousproductionsofnature,soshefrequentlyproducestheminmuchgreaterquantitiesthantheconsumptionoftheinhabitantsrequires。Insuchastateofthingsthesupplycommonlyexceedsthedemand。Indifferentstatesofsociety,indifferentstagesofimprovement,therefore,suchcommoditieswillrepresent,orbeequivalentto,verydifferentquantitiesoflabour。
Ineverystateofsociety,ineverystageofimprovement,cornistheproductionofhumanindustry。Buttheaverageproduceofeverysortofindustryisalwayssuited,moreorlessexactly,totheaverageconsumption;theaveragesupplytotheaveragedemand。Ineverydifferentstageofimprovement,besides,theraisingofequalquantitiesofcorninthesamesoilandclimatewill,atanaverage,requirenearlyequalquantitiesoflabour;
orwhatcomestothesamething,thepriceofnearlyequalquantities;thecontinualincreaseoftheproductivepowersoflabourinanimprovingstateofcultivationbeingmoreorlesscounterbalancedbythecontinuallyincreasingpriceofcattle,theprincipalinstrumentsofagriculture。Uponalltheseaccounts,therefore,wemayrestassuredthatequalquantitiesofcornwill,ineverystateofsociety,ineverystageofimprovement,morenearlyrepresent,orbeequivalentto,equalquantitiesoflabourthanequalquantitiesofanyotherpartoftherudeproduceofland。Corn,accordingly,ithasalreadybeenobserved,is,inallthedifferentstagesofwealthandimprovement,amoreaccuratemeasureofvaluethananyothercommodityorsetofcommodities。Inallthosedifferentstages,therefore,wecanjudgebetteroftherealvalueofsilverbycomparingitwithcornthanbycomparingitwithanyothercommodityorsetofcommodities。
Corn,besides,orwhateverelseisthecommonandfavouritevegetablefoodofthepeople,constitutes,ineverycivilisedcountry,theprincipalpartofthesubsistenceofthelabourer。
Inconsequenceoftheextensionofagriculture,thelandofeverycountryproducesamuchgreaterquantityofvegetablethanofanimalfood,andthelabourereverywhereliveschieflyuponthewholesomefoodthatischeapestandmostabundant。Butcher’smeat,exceptinthemostthrivingcountries,orwherelabourismosthighlyrewarded,makesbutaninsignificantpartofhissubsistence;poultrymakesastillsmallerpartofit,andgamenopartofit。InFrance,andeveninScotland,wherelabourissomewhatbetterrewardedthaninFrance,thelabouringpoorseldomeatbutcher’smeat,exceptuponholidays,andotherextraordinaryoccasions。Themoneypriceoflabour,therefore,dependsmuchmoreupontheaveragemoneypriceofcorn,thesubsistenceofthelabourer,thanuponthatofbutcher’smeat,orofanyotherpartoftherudeproduceofland。Therealvalueofgoldandsilver,therefore,therealquantityoflabourwhichtheycanpurchaseorcommand,dependsmuchmoreuponthequantityofcornwhichtheycanpurchaseorcommandthanuponthatofbutcher’smeat,oranyotherpartoftherudeproduceofland。
Suchslightobservations,however,uponthepriceseitherofcornorofothercommodities,wouldnotprobablyhavemisledsomanyintelligentauthorshadtheynotbeeninfluenced,atthesametime,bythepopularnotion,thatasthequantityofsilvernaturallyincreasesineverycountrywiththeincreaseofsoitsvaluediminishesasitsquantityincreases。Thisnotion,however,seemstobealtogethergroundless。
Thequantityofthepreciousmetalsmayincreaseinanycountryfromtwodifferentcauses;either,first,fromtheincreasedabundanceofthemineswhichsupplyit;or,secondly,fromtheincreasedwealthofthepeople,fromtheincreasedproduceoftheirannuallabour。Thefirstofthesecausesisnodoubtnecessarilyconnectedwiththediminutionofthevalueofthepreciousmetals,butthesecondisnot。
Whenmoreabundantminesarediscovered,agreaterquantityofthepreciousmetalsisbroughttomarket,andthequantityofthenecessariesandconvenienciesoflifeforwhichtheymustbeexchangedbeingthesameasbefore,equalquantitiesofthemetalsmustbeexchangedforsmallerquantitiesofcommodities。
Sofar,therefore,astheincreaseofthequantityofthepreciousmetalsinanycountryarisesfromtheincreasedabundanceofthemines,itisnecessarilyconnectedwithsomediminutionoftheirvalue。
When,onthecontrary,thewealthofanycountryincreases,whentheannualproduceofitslabourbecomesgraduallygreaterandgreater,agreaterquantityofcoinbecomesnecessaryinordertocirculateagreaterquantityofcommodities;andthepeople,astheycanaffordit,astheyhavemorecommoditiestogiveforit,willnaturallypurchaseagreaterandagreaterquantityofplate。Thequantityoftheircoinwillincreasefromnecessity;thequantityoftheirplatefromvanityandostentation,orfromthesamereasonthatthequantityoffinestatues,pictures,andofeveryotherluxuryandcuriosity,islikelytoincreaseamongthem。Butasstatuariesandpaintersarenotlikelytobeworserewardedintimesofwealthandprosperitythanintimesofpovertyanddepression,sogoldandsilverarenotlikelytobeworsepaidfor。
Thepriceofgoldandsilver,whentheaccidentaldiscoveryofmoreabundantminesdoesnotkeepitdown,asitnaturallyriseswiththewealthofeverycountry,so,whateverbethestateofthemines,itisatalltimesnaturallyhigherinarichthaninapoorcountry。Goldandsilver,likeallothercommodities,naturallyseekthemarketwherethebestpriceisgivenforthem,andthebestpriceiscommonlygivenforeverythinginthecountrywhichcanbestaffordit。Labour,itmustberemembered,istheultimatepricewhichispaidforeverything,andincountrieswherelabourisequallywellregarded,themoneypriceoflabourwillbeinproportiontothatofthesubsistenceofthelabourer。Butgoldandsilverwillnaturallyexchangeforagreaterquantityofsubsistenceinarichthaninapoorcountry,inacountrywhichaboundswithsubsistencethaninonewhichisbutindifferentlysuppliedwithit。Ifthetwocountriesareatagreatdistance,thedifferencemaybeverygreat;becausethoughthemetalsnaturallyflyfromtheworsetothebettermarket,yetitmaybedifficulttotransporttheminsuchquantitiesastobringtheirpricenearlytoalevelinboth。Ifthecountriesarenear,thedifferencewillbesmaller,andmaysometimesbescarceperceptible;becauseinthiscasethetransportationwillbeeasy。ChinaisamuchrichercountrythananypartofEurope,andthedifferencebetweenthepriceofsubsistenceinChinaandinEuropeisverygreat。RiceinChinaismuchcheaperthanwheatisanywhereinEurope。EnglandisamuchrichercountrythanScotland;butthedifferencebetweenthemoney—priceofcorninthosetwocountriesismuchsmaller,andisbutjustperceptible。
Inproportiontothequantityormeasure,ScotchcorngenerallyappearstobeagooddealcheaperthanEnglish;butinproportiontoitsquality,itiscertainlysomewhatdearer。ScotlandreceivesalmosteveryyearverylargesuppliesfromEngland,andeverycommoditymustcommonlybesomewhatdearerinthecountrytowhichitisbroughtthaninthatfromwhichitcomes。Englishcorn,therefore,mustbedearerinScotlandthaninEngland,andyetinproportiontoitsquality,ortothequantityandgoodnessoftheflourormealwhichcanbemadefromit,itcannotcommonlybesoldhighertherethantheScotchcornwhichcomestomarketincompetitionwithit。
ThedifferencebetweenthemoneypriceoflabourinChinaandinEuropeisstillgreaterthanthatbetweenthemoneypriceofsubsistence;becausetherealrecompenseoflabourishigherinEuropethaninChina,thegreaterpartofEuropebeinginanimprovingstate,whileChinaseemstobestandingstill。ThemoneypriceoflabourislowerinScotlandthaninEnglandbecausetherealrecompenseoflabourismuchlower;Scotland,thoughadvancingtogreaterwealth,advancingmuchmoreslowlythanEngland。ThefrequencyofemigrationfromScotland,andtherarityofitfromEngland,sufficientlyprovethatthedemandforlabourisverydifferentinthetwocountries。Theproportionbetweentherealrecompenseoflabourindifferentcountries,itmustberemembered,isnaturallyregulatednotbytheiractualwealthorpoverty,butbytheiradvancing,stationary,ordecliningcondition。
Goldandsilver,astheyarenaturallyofthegreatestvalueamongtherichest,sotheyarenaturallyoftheleastvalueamongthepoorestnations。Amongsavages,thepoorestofallnations,theyareofscarceanyvalue。
Ingreattownscornisalwaysdearerthaninremotepartsofthecountry。This,however,istheeffect,notoftherealcheapnessofsilver,butoftherealdearnessofcorn。Itdoesnotcostlesslabourtobringsilvertothegreattownthantotheremotepartsofthecountry;butitcostsagreatdealmoretobringcorn。
Insomeveryrichandcommercialcountries,suchasHollandandtheterritoryofGenoa,cornisdearforthesamereasonthatitisdearingreattowns。Theydonotproduceenoughtomaintaintheirinhabitants。Theyarerichintheindustryandskilloftheirartificersandmanufacturers;ineverysortofmachinerywhichcanfacilitateandabridgelabour;inshipping,andinalltheotherinstrumentsandmeansofcarriageandcommerce:buttheyarepoorincorn,which,asitmustbebroughttothemfromdistantcountries,must,byanadditiontoitsprice,payforthecarriagefromthosecountries。ItdoesnotcostlesslabourtobringsilvertoAmsterdamthantoDantzic;butitcostsagreatdealmoretobringcorn。Therealcostofsilvermustbenearlythesameinbothplaces;butthatofcornmustbeverydifferent。
DiminishtherealopulenceeitherofHollandoroftheterritoryofGenoa,whilethenumberoftheirinhabitantsremainsthesame:
diminishtheirpowerofsupplyingthemselvesfromdistantcountries;andthepriceofcorn,insteadofsinkingwiththatdiminutioninthequantityoftheirsilver,whichmustnecessarilyaccompanythisdeclensioneitherasitscauseorasitseffect,willrisetothepriceofafamine。Whenweareinwantofnecessarieswemustpartwithallsuperfluities,ofwhichthevalue,asitrisesintimesofopulenceandprosperity,soitsinksintimesofpovertyanddistress。Itisotherwisewithnecessaries。Theirrealprice,thequantityoflabourwhichtheycanpurchaseorcommand,risesintimesofpovertyanddistress,andsinksintimesofopulenceandprosperity,whicharealwaystimesofgreatabundance;fortheycouldnototherwisebetimesofopulenceandprosperity。Cornisanecessary,silverisonlyasuperfluity。
Whatever,therefore,mayhavebeentheincreaseinthequantityofthepreciousmetals,which,duringtheperiodbetweenthemiddleofthefourteenthandthatofthesixteenthcentury,arosefromtheincreaseofwealthandimprovement,itcouldhavenotendencytodiminishtheirvalueeitherinGreatBritainorinanyotherpartofEurope。Ifthosewhohavecollectedthepricesofthingsinancienttimes,therefore,had,duringthisperiod,noreasontoinferthediminutionofthevalueofsilver,fromanyobservationswhichtheyhadmadeuponthepriceseitherofcornorofothercommodities,theyhadstilllessreasontoinferitfromanysupposedincreaseofwealthandimprovement。
SECONDPERIOD
Buthowvarioussoevermayhavebeentheopinionsofthelearnedconcerningtheprogressofthevalueofsilverduringthisfirstperiod,theyareunanimousconcerningitduringthesecond。
Fromabout1570toabout1640,duringaperiodofaboutseventyyears,thevariationintheproportionbetweenthevalueofsilverandthatofcornheldaquiteoppositecourse。Silversunkinitsrealvalue,orwouldexchangeforasmallerquantityoflabourthanbefore;andcornroseinitsnominalprice,andinsteadofbeingcommonlysoldforabouttwoouncesofsilverthequarter,orabouttenshillingsofourpresentmoney,cametobesoldforsixandeightouncesofsilverthequarter,oraboutthirtyandfortyshillingsofourpresentmoney。
ThediscoveryoftheabundantminesofAmericaseemstohavebeenthesolecauseofthisdiminutioninthevalueofsilverinproportiontothatofcorn。Itisaccountedforaccordinglyinthesamemannerbyeverybody;andthereneverhasbeenanydisputeeitheraboutthefactoraboutthecauseofit。ThegreaterpartofEuropewas,duringthisperiod,advancinginindustryandimprovement,andthedemandforsilvermustconsequentlyhavebeenincreasing。Buttheincreaseofthesupplyhad,itseems,sofarexceededthatofthedemand,thatthevalueofthatmetalsunkconsiderably。ThediscoveryoftheminesofAmerica,itistobeobserved,doesnotseemtohavehadanyverysensibleeffectuponthepricesofthingsinEnglandtillafter1570;thougheventheminesofPotosihadbeendiscoveredmorethantwentyyearsbefore。
From1595to1620,bothinclusive,theaveragepriceofthequarterofninebushelsofthebestwheatatWindsormarketappears,fromtheaccountsofEtonCollege,tohavebeenL21s。6
3/4d。Fromwhichsum,neglectingthefraction,anddeductinganinth,or4s。71\\3d。,thepriceofthequarterofeightbushelscomesouttohavebeenL116s。102/3d。Andfromthissum,neglectinglikewisethefraction,anddeductinganinth,or4s。
1d。,forthedifferencebetweenthepriceofthebestwheatandthatofthemiddlewheat,thepriceofthemiddlewheatcomesouttohavebeenaboutL112s。9d。,oraboutsixouncesandone—thirdofanounceofsilver。
From1621to1636,bothinclusive,theaveragepriceofthesamemeasureofthebestwheatatthesamemarketappears,fromthesameaccounts,tohavebeenL210s。;fromwhichmakingthelikedeductionsasintheforegoingcase,theaveragepriceofthequarterofeightbushelsofmiddlewheatcomesouttohavebeenL119s。6d。,oraboutsevenouncesandtwo—thirdsofanounceofsilver。
THIRDPERIOD
Between1630and1640,orabout1636,theeffectofthediscoveryoftheminesofAmericainreducingthevalueofsilverappearstohavebeencompleted,andthevalueofthatmetalseemsnevertohavesunklowerinproportiontothatofcornthanitwasaboutthattime。Itseemstohaverisensomewhatinthecourseofthepresentcentury,andithadprobablybeguntodosoevensometimebeforetheendofthelast。
From1637to1700,bothinclusive,beingthesixty—fourlastyearsofthelastcentury,theaveragepriceofthequarterofninebushelsofthebestwheatatWindsormarketappears,fromthesameaccounts,tohavebeenL211s。O1\\3d。,whichisonly1sO1\\3d。dearerthanithadbeenduringthesixteenyearsbefore。
Butinthecourseofthesesixty—fouryearstherehappenedtwoeventswhichmusthaveproducedamuchgreaterscarcityofcornthanwhatthecourseoftheseasonswouldotherwisehaveoccasioned,andwhich,therefore,withoutsupposinganyfurtherreductioninthevalueofsilver,willmuchmorethanaccountforthisverysmallenhancementofprice。
Thefirstoftheseeventswasthecivilwar,which,bydiscouragingtillageandinterruptingcommerce,musthaveraisedthepriceofcornmuchabovewhatthecourseoftheseasonswouldotherwisehaveoccasioned。Itmusthavehadthiseffectmoreorlessatallthedifferentmarketsinthekingdom,butparticularlyatthoseintheneighbourhoodofLondon,whichrequiretobesuppliedfromthegreatestdistance。In1648,accordingly,thepriceofthebestwheatatWindsormarketappears,fromthesameaccounts,tohavebeenL45s。,andin1649
tohavebeenL4thequarterofninebushels。TheexcessofthosetwoyearsaboveL210s。(theaveragepriceofthesixteenyearspreceding1637)isL35s。;whichdividedamongthesixty—fourlastyearsofthelastcenturywillaloneverynearlyaccountforthatsmallenhancementofpricewhichseemstohavetakenplaceinthem。These,however,thoughthehighest,arebynomeanstheonlyhighpriceswhichseemtohavebeenoccasionedbythecivilwars。