Thesecondeventwasthebountyupontheexportationofcorngrantedin1688。Thebounty,ithasbeenthoughtbymanypeople,byencouragingtillage,may,inalongcourseofyears,haveoccasionedagreaterabundance,andconsequentlyagreatercheapnessofcorninthehome—marketthanwhatwouldotherwisehavetakenplacethere。Howfarthebountycouldproducethiseffectatanytime,Ishallexaminehereafter;Ishallonlyobserveatpresentthat,between1688and1700,ithadnottimetoproduceanysucheffect。Duringthisshortperioditsonlyeffectmusthavebeen,byencouragingtheexportationofthesurplusproduceofeveryyear,andtherebyhinderingtheabundanceofoneyearfromcompensatingthescarcityofanother,toraisethepriceinthehome—market。ThescarcitywhichprevailedinEnglandfrom1693to1699,bothinclusive,thoughnodoubtprincipallyowingtothebadnessoftheseasons,and,therefore,extendingthroughaconsiderablepartofEurope,musthavebeensomewhatenhancedbythebounty。In1699,accordingly,thefurtherexportationofcornwasprohibitedforninemonths。
Therewasathirdeventwhichoccurredinthecourseofthesameperiod,andwhich,thoughitcouldnotoccasionanyscarcityofcorn,nor,perhaps,anyaugmentationintherealquantityofsilverwhichwasusuallypaidforit,mustnecessarilyhaveoccasionedsomeaugmentationinthenominalsum。Thiseventwasthegreatdebasementofthesilvercoin,byclippingandwearing。
ThisevilhadbeguninthereignofCharlesIIandhadgoneoncontinuallyincreasingtill1695;atwhichtime,aswemaylearnfromMr。Lowndes,thecurrentsilvercoinwas,atanaverage,nearfive—and—twentypercentbelowitsstandardvalue。Butthenominalsumwhichconstitutesthemarketpriceofeverycommodityisnecessarilyregulated,notsomuchbythequantityofsilver,which,accordingtothestandard,oughttobecontainedinit,asbythatwhich,itisfoundbyexperience,actuallyiscontainedinit。Thisnominalsum,therefore,isnecessarilyhigherwhenthecoinismuchdebasedbyclippingandwearingthanwhenneartoitsstandardvalue。
Inthecourseofthepresentcentury,thesilvercoinhasnotatanytimebeenmorebelowitsstandardweightthanitisatpresent。Butthoughverymuchdefaced,itsvaluehasbeenkeptupbythatofthegoldcoinforwhichitisexchanged。Forthoughbeforethelaterecoinage,thegoldcoinwasagooddealdefacedtoo,itwaslesssothanthesilver。In1695,onthecontrary,thevalueofthesilvercoinwasnotkeptupbythegoldcoin;aguineathencommonlyexchangingforthirtyshillingsofthewornandcliptsilver。Beforethelaterecoinageofthegold,thepriceofsilverbullionwasseldomhigherthanfiveshillingsandsevenpenceanounce,whichisbutfivepenceabovethemintprice。
Butin1695,thecommonpriceofsilverbullionwassixshillingsandfivepenceanounce,whichisfifteenpenceabovethemintprice。Evenbeforethelaterecoinageofthegold,therefore,thecoin,goldandsilvertogether,whencomparedwithsilverbullion,wasnotsupposedtobemorethaneightpercentbelowitsstandardvalue。In1695,onthecontrary,ithadbeensupposedtobenearfive—and—twentypercentbelowthatvalue。
Butinthebeginningofthepresentcentury,thatis,immediatelyafterthegreatrecoinageinKingWilliam’stime。thegreaterpartofthecurrentsilvercoinmusthavebeenstillnearertoitsstandardweightthanitisatpresent。Inthecourseofthepresentcentury,too,therehasbeennogreatpubliccalamity,suchasthecivilwar,whichcouldeitherdiscouragetillage,orinterrupttheinteriorcommerceofthecountry。Andthoughthebounty,whichhastakenplacethroughthegreaterpartofthiscentury,mustalwaysraisethepriceofcornsomewhathigherthanitotherwisewouldbeintheactualstateoftillage;yetas,inthecourseofthiscentury,thebountyhashadfulltimetoproduceallthegoodeffectscommonlyimputedtoit,toencouragetillage,andtherebytoincreasethequantityofcorninthehomemarket,itmay,upontheprinciplesofasystemwhichIshallexplainandexaminehereafter,besupposedtohavedonesomethingtolowerthepriceofthatcommoditytheoneway,aswellastoraiseittheother。Itisbymanypeoplesupposedtohavedonemore。Inthesixty—fourfirstyearsofthepresentcenturyaccordinglytheaveragepriceofthequarterofninebushelsofthebestwheatatWindsormarketappears,bytheaccountsofEtonCollege,tohavebeenL2os。61/2d。,whichisabouttenshillingsandsixpence,ormorethanfive—and—twentypercent,cheaperthanithadbeenduringthesixty—fourlastyearsofthelastcentury;andabout9s。6d。cheaperthanithadbeenduringthesixteenyearspreceding1636,whenthediscoveryoftheabundantminesofAmericamaybesupposedtohaveproduceditsfulleffect;andaboutoneshillingcheaperthanithadbeeninthetwenty—sixyearspreceding1620,beforethatdiscoverycanwellbesupposedtohaveproduceditsfulleffect。Accordingtothisaccount,theaveragepriceofmiddlewheat,duringthesesixty—fourfirstyearsofthepresentcentury,comesouttohavebeenaboutthirty—twoshillingsthequarterofeightbushels。
Thevalueofsilver,therefore,seemstohaverisensomewhatinproportiontothatofcornduringthecourseofthepresentcentury,andithadprobablybeguntodosoevensometimebeforetheendofthelast。
In1687,thepriceofthequarterofninebushelsofthebestwheatatWindsormarketwasL15s。2d。thelowestpriceatwhichithadeverbeenfrom1595。
In1688,Mr。GregoryKing,amanfamousforhisknowledgeinmattersofthiskind,estimatedtheaveragepriceofwheatinyearsofmoderateplentytobetothegrower3s。6d。thebushel,oreight—and—twentyshillingsthequarter。Thegrower’spriceI
understandtobethesamewithwhatissometimescalledthecontractprice,orthepriceatwhichafarmercontractsforacertainnumberofyearstodeliveracertainquantityofcorntoadealer。Asacontractofthiskindsavesthefarmertheexpenseandtroubleofmarketing,thecontractpriceisgenerallylowerthanwhatissupposedtobetheaveragemarketprice。Mr。Kinghadjudgedeight—and—twentyshillingsthequartertobeatthattimetheordinarycontractpriceinyearsofmoderateplenty。
Beforethescarcityoccasionedbythelateextraordinarycourseofbadseasons,itwas,Ihavebeenassured,theordinarycontractpriceinallcommonyears。
In1688wasgrantedtheParliamentarybountyupontheexportationofcorn。Thecountrygentlemen,whothencomposedastillgreaterproportionofthelegislaturethantheydoatpresent,hadfeltthatthemoneypriceofcornwasfalling。ThebountywasanexpedienttoraiseitartificiallytothehighpriceatwhichithadfrequentlybeensoldinthetimesofCharlesIandIII。Itwastotakeplace,therefore,tillwheatwassohighasforty—eightshillingsthequarter,thatis,twentyshillings,orfive—seventhsdearerthanMr。Kinghadinthatveryyearestimatedthegrower’spricetobeintimesofmoderateplenty。Ifhiscalculationsdeserveanypartofthereputationwhichtheyhaveobtainedveryuniversally,eight—and—fortyshillingsthequarterwasapricewhich,withoutsomesuchexpedientasthebounty,couldnotatthattimebeexpected,exceptinyearsofextraordinaryscarcity。ButthegovernmentofKingWilliamwasnotthenfullysettled。Itwasinnoconditiontorefuseanythingtothecountrygentlemen,fromwhomitwasatthatverytimesolicitingthefirstestablishmentoftheannualland—tax。
Thevalueofsilver,therefore,inproportiontothatofcorn,hadprobablyrisensomewhatbeforetheendofthelastcentury;anditseemstohavecontinuedtodosoduringthecourseofthegreaterpartofthepresent;thoughthenecessaryoperationofthebountymusthavehinderedthatrisefrombeingsosensibleasitotherwisewouldhavebeenintheactualstateoftillage。
Inplentifulyearsthebounty,byoccasioninganextraordinaryexportation,necessarilyraisesthepriceofcornabovewhatitotherwisewouldbeinthoseyears。Toencouragetillage,bykeepingupthepriceofcorneveninthemostplentifulyears,wastheavowedendoftheinstitution。
Inyearsofgreatscarcity,indeed,thebountyhasgenerallybeensuspended。Itmust,however,havehadsomeeffectevenuponthepricesofmanyofthoseyears。Bytheextraordinaryexportationwhichitoccasionsinyearsofplenty,itmustfrequentlyhindertheplentyofoneyearfromcompensatingthescarcityofanother。
Bothinyearsofplentyandinyearsofscarcity,therefore,thebountyraisesthepriceofcornabovewhatitnaturallywouldbeintheactualstateoftillage。If,duringthesixty—fourfirstyearsofthepresentcentury,therefore,theaveragepricehasbeenlowerthanduringthesixty—fourlastyearsofthelastcentury,itmust,inthesamestateoftillage,havebeenmuchmoreso,haditnotbeenforthisoperationofthebounty。
Butwithoutthebounty,itmaybesaid,thestateoftillagewouldnothavebeenthesame。Whatmayhavebeentheeffectsofthisinstitutionupontheagricultureofthecountry,Ishallendeavourtoexplainhereafter,whenIcometotreatparticularlyofbounties。Ishallonlyobserveatpresentthatthisriseinthevalueofsilver,inproportiontothatofcorn,hasnotbeenpeculiartoEngland。IthasbeenobservedtohavetakenplaceinFrance,duringthesameperiod,andnearlyinthesameproportiontoo,bythreeveryfaithful,diligent,andlaboriouscollectorsofthepricesofcorn,Mr。DupredeSt。Maur,Mr。Messance,andtheauthoroftheEssayonthepoliceofgrain。ButinFrance,till1764,theexportationofgrainwasbylawprohibited;anditissomewhatdifficulttosupposethatnearlythesamediminutionofpricewhichtookplaceinonecountry,notwithstandingthisprohibition,shouldinanotherbeowingtotheextraordinaryencouragementgiventoexportation。
Itwouldbemoreproper,perhaps,toconsiderthisvariationintheaveragemoneypriceofcornastheeffectratherofsomegradualriseintherealvalueofsilverintheEuropeanmarketthanofanyfallintherealaveragevalueofcorn。Corn,ithasalreadybeenobserved,isatdistantperiodsoftimeamoreaccuratemeasureofvaluethaneithersilver,orperhapsanyothercommodity。When,afterthediscoveryoftheabundantminesofAmerica,cornrosetothreeandfourtimesitsformermoneyprice,thischangewasuniversallyascribed,nottoanyriseintherealvalueofcorn,buttoafallintherealvalueofsilver。Ifduringthesixty—fourfirstyearsofthepresentcentury,therefore,theaveragemoneypriceofcornhasfallensomewhatbelowwhatithadbeenduringthegreaterpartofthelastcentury,weshouldinthesamemannerimputethischange,nottoanyfallintherealvalueofcorn,buttosomeriseintherealvalueofsilverintheEuropeanmarket。
Thehighpriceofcornduringthesetenortwelveyearspast,indeed,hasoccasionedasuspicionthattherealvalueofsilverstillcontinuestofallintheEuropeanmarket。Thishighpriceofcorn,however,seemsevidentlytohavebeentheeffectoftheextraordinaryunfavourablenessoftheseasons,andoughtthereforetoberegarded,notasapermanent,butasatransitoryandoccasionalevent。TheseasonsforthesetenortwelveyearspasthavebeenunfavourablethroughthegreaterpartofEurope;
andthedisordersofPolandhaveverymuchincreasedthescarcityinallthosecountrieswhich,indearyears,usedtobesuppliedfromthatmarket。Solongacourseofbadseasons,thoughnotaverycommonevent,isbynomeansasingularone;andwhoeverhasinquiredmuchintothehistoryofthepricesofcorninformertimeswillbeatnolosstorecollectseveralotherexamplesofthesamekind。Tenyearsofextraordinaryscarcity,besides,arenotmorewonderfulthantenyearsofextraordinaryplenty。Thelowpriceofcornfrom1741to1750,bothinclusive,mayverywellbesetinoppositiontoitshighpriceduringtheselasteightortenyears。From1741to1750,theaveragepriceofthequarterofninebushelsofthebestwheatatWindsormarket,itappearsfromtheaccountsofEtonCollege,wasonlyL113s。9
1/2d。,whichisnearly6s。3d。belowtheaveragepriceofthesixty—fourfirstyearsofthepresentcentury。Theaveragepriceofthequarterofeightbushelsofmiddlewheatcomesout,accordingtothisaccount,tohavebeen,duringthesetenyears,only516s。8d。
Between1741and1750,however,thebountymusthavehinderedthepriceofcornfromfallingsolowinthehomemarketasitnaturallywouldhavedone。Duringthesetenyearsthequantityofallsortsofgrainexported,itappearsfromthecustom—housebooks,amountedtonolessthaneightmillionstwenty—ninethousandonehundredandfifty—sixquartersonebushel。ThebountypaidforthisamountedtoL1,514,96217s。4
1/2d。In1749accordingly,Mr。Pelham,atthattimePrimeMinister,observedtotheHouseofCommonsthatforthethreeyearsprecedingaveryextraordinarysumhadbeenpaidasbountyfortheexportationofcorn。Hehadgoodreasontomakethisobservation,andinthefollowingyearhemighthavehadstillbetter。InthatsingleyearthebountypaidamountedtonolessthanL324,17610s。6d。Itisunnecessarytoobservehowmuchthisforcedexportationmusthaveraisedthepriceofcornabovewhatitotherwisewouldhavebeeninthehomemarket。
Attheendoftheaccountsannexedtothischapterthereaderwillfindtheparticularaccountofthosetenyearsseparatedfromtherest。Hewillfindthere,too,theparticularaccountoftheprecedingtenyears,ofwhichtheaverageislikewisebelow,thoughnotsomuchbelow,thegeneralaverageofthesixty—fourfirstyearsofthecentury。Theyear1740,however,wasayearofextraordinaryscarcity。Thesetwentyyearspreceding1750mayverywellbesetinoppositiontothetwentypreceding1770。Astheformerwereagooddealbelowthegeneralaverageofthecentury,notwithstandingtheinterventionofoneortwodearyears;sothelatterhavebeenagooddealaboveit,notwithstandingtheinterventionofoneortwocheapones,of1759,forexample。Iftheformerhavenotbeenasmuchbelowthegeneralaverageasthelatterhavebeenaboveit,weoughtprobablytoimputeittothebounty。Thechangehasevidentlybeentoosuddentobeascribedtoanychangeinthevalueofsilver,whichisalwaysslowandgradual。Thesuddennessoftheeffectcanbeaccountedforonlybyacausewhichcanoperatesuddenly,theaccidentalvariationoftheseasons。
ThemoneypriceoflabourinGreatBritainhas,indeed,risenduringthecourseofthepresentcentury。This,however,seemstobetheeffect,notsomuchofanydiminutioninthevalueofsilverintheEuropeanmarket,asofanincreaseinthedemandforlabourinGreatBritain,arisingfromthegreat,andalmostuniversalprosperityofthecountry。InFrance,acountrynotaltogethersoprosperous,themoneypriceoflabourhas,sincethemiddleofthelastcentury,beenobservedtosinkgraduallywiththeaveragemoneypriceofcorn。Bothinthelastcenturyandinthepresenttheday—wagesofcommonlabouraretheresaidtohavebeenprettyuniformlyaboutthetwentiethpartoftheaveragepriceoftheseptierofwheat,ameasurewhichcontainsalittlemorethanfourWinchesterbushels。InGreatBritaintherealrecompenseoflabour,ithasalreadybeenshown,therealquantitiesofthenecessariesandconvenienciesoflifewhicharegiventothelabourer,hasincreasedconsiderablyduringthecourseofthepresentcentury。Theriseinitsmoneypriceseemstohavebeentheeffect,notofanydiminutionofthevalueofsilverinthegeneralmarketofEurope,butofariseintherealpriceoflabourintheparticularmarketofGreatBritain,owingtothepeculiarlyhappycircumstancesofthecountry。
ForsometimeafterthefirstdiscoveryofAmerica,silverwouldcontinuetosellatitsformer,ornotmuchbelowitsformerprice。Theprofitsofminingwouldforsometimebeverygreat,andmuchabovetheirnaturalrate。ThosewhoimportedthatmetalintoEurope,however,wouldsoonfindthatthewholeannualimportationcouldnotbedisposedofatthishighprice。Silverwouldgraduallyexchangeforasmallerandasmallerquantityofgoods。Itspricewouldsinkgraduallylowerandlowertillitfelltoitsnaturalprice,ortowhatwasjustsufficienttopay,accordingtotheirnaturalrates,thewagesofthelabour,theprofitsofthestock,andtherentoftheland,whichmustbepaidinordertobringitfromtheminetothemarket。InthegreaterpartofthesilverminesofPeru,thetaxoftheKingofSpain,amountingtoatenthofthegrossproduce,eatsup,ithasalreadybeenobserved,thewholerentoftheland。Thistaxwasoriginallyahalf;itsoonafterwardsfelltoathird,thentoafifth,andatlasttoatenth,atwhichrateitstillcontinues。
InthegreaterpartofthesilverminesofPeruthis,itseems,isallthatremainsafterreplacingthestockoftheundertakerofthework,togetherwithitsordinaryprofits;anditseemstobeuniversallyacknowledgedthattheseprofits,whichwereonceveryhigh,arenowaslowastheycanwellbe,consistentlywithcarryingontheirworks。
ThetaxoftheKingofSpainwasreducedtoafifthpartoftheregisteredsilverin1504,one—and—fortyyearsbefore1545,thedateofthediscoveryoftheminesofPotosi。Inthecourseofninetyyears,orbefore1636,thesemines,themostfertileinallAmerica,hadtimesufficienttoproducetheirfulleffect,ortoreducethevalueofsilverintheEuropeanmarketaslowasitcouldwellfall,whileitcontinuedtopaythistaxtotheKingofSpain。Ninetyyearsistimesufficienttoreduceanycommodity,ofwhichthereisnomonopoly,toitsnaturalprice,ortothelowestpriceatwhich,whileitpaysaparticulartax,itcancontinuetobesoldforanyconsiderabletimetogether。
ThepriceofsilverintheEuropeanmarketmightperhapshavefallenstilllower,anditmighthavebecomenecessaryeithertoreducethetaxuponit,notonlytoonetenth,asin1736,buttoonetwentieth,inthesamemannerasthatupongold,ortogiveupworkingthegreaterpartoftheAmericanmineswhicharenowwrought。Thegradualincreaseofthedemandforsilver,orthegradualenlargementofthemarketfortheproduceofthesilverminesofAmerica,isprobablythecausewhichhaspreventedthisfromhappening,andwhichhasnotonlykeptupthevalueofsilverintheEuropeanmarket,buthasperhapsevenraiseditsomewhathigherthanitwasaboutthemiddleofthelastcentury。
SincethefirstdiscoveryofAmerica,themarketfortheproduceofitssilvermineshasbeengrowinggraduallymoreandmoreextensive。
First,themarketofEuropehasbecomegraduallymoreandmoreextensive。SincethediscoveryofAmerica,thegreaterpartofEuropehasbeenmuchimproved。England,Holland,France,andGermany;evenSweden,Denmark,andRussia,havealladvancedconsiderablybothinagricultureandinmanufactures。Italyseemsnottohavegonebackwards。ThefallofItalyprecededtheconquestofPeru。Sincethattimeitseemsrathertohaverecoveredalittle。SpainandPortugal,indeed,aresupposedtohavegonebackwards。Portugal,however,isbutaverysmallpartofEurope,andthedeclensionofSpainisnot,perhaps,sogreatasiscommonlyimagined。Inthebeginningofthesixteenthcentury,Spainwasaverypoorcountry,evenincomparisonwithFrance,whichhasbeensomuchimprovedsincethattime。ItwasthewellknownremarkoftheEmperorCharlesV,whohadtravelledsofrequentlythroughbothcountries,thateverythingaboundedinFrance,butthateverythingwaswantinginSpain。TheincreasingproduceoftheagricultureandmanufacturesofEuropemustnecessarilyhaverequiredagradualincreaseinthequantityofsilvercointocirculateit;andtheincreasingnumberofwealthyindividualsmusthaverequiredthelikeincreaseinthequantityoftheirplateandotherornamentsofsilver。
Secondly,Americaisitselfanewmarketfortheproduceofitsownsilvermines;andasitsadvancesinagriculture,industry,andpopulationaremuchmorerapidthanthoseofthemostthrivingcountriesinEurope,itsdemandmustincreasemuchmorerapidly。TheEnglishcoloniesarealtogetheranewmarket,which,partlyforcoinandpartlyforplate,requiresacontinuallyaugmentingsupplyofsilverthroughagreatcontinentwherethereneverwasanydemandbefore。Thegreaterpart,too,oftheSpanishandPortuguesecoloniesarealtogethernewmarkets。NewGranada,theYucatan,Paraguay,andtheBrazilswere,beforediscoveredbytheEuropeans,inhabitedbysavagenationswhohadneitherartsnoragriculture。Aconsiderabledegreeofbothhasnowbeenintroducedintoallofthem。EvenMexicoandPeru,thoughtheycannotbeconsideredasaltogethernewmarkets,arecertainlymuchmoreextensiveonesthantheyeverwerebefore。Afterallthewonderfultaleswhichhavebeenpublishedconcerningthesplendidstateofthosecountriesinancienttimes,whoeverreads,withanydegreeofsoberjudgment,thehistoryoftheirfirstdiscoveryandconquest,willevidentlydiscernthat,inarts,agriculture,andcommerce,theirinhabitantsweremuchmoreignorantthantheTartarsoftheUkraineareatpresent。EventhePeruvians,themorecivilisednationofthetwo,thoughtheymadeuseofgoldandsilverasornaments,hadnocoinedmoneyofanykind。Theirwholecommercewascarriedonbybarter,andtherewasaccordinglyscarceanydivisionoflabouramongthem。Thosewhocultivatedthegroundwereobligedtobuildtheirownhouses,tomaketheirownhouseholdfurniture,theirownclothes,shoes,andinstrumentsofagriculture。Thefewartificersamongthemaresaidtohavebeenallmaintainedbythesovereign,thenobles,andthepriests,andwereprobablytheirservantsorslaves。AlltheancientartsofMexicoandPeruhaveneverfurnishedonesinglemanufacturetoEurope。TheSpanisharmies,thoughtheyscarceeverexceededfivehundredmen,andfrequentlydidnotamounttohalfthatnumber,foundalmosteverywheregreatdifficultyinprocuringsubsistence。Thefamineswhichtheyaresaidtohaveoccasionedalmostwherevertheywent,incountries,too,whichatthesametimearerepresentedasverypopulousandwellcultivated,sufficientlydemonstratethatthestoryofthispopulousnessandhighcultivationisinagreatmeasurefabulous。TheSpanishcoloniesareunderagovernmentinmanyrespectslessfavourabletoagriculture,improvement,andpopulationthanthatoftheEnglishcolonies。Theyseem,however,tobeadvancinginallthesemuchmorerapidlythananycountryinEurope。Inafertilesoilandhappyclimate,thegreatabundanceandcheapnessofland,acircumstancecommontoallnewcolonies,is,itseems,sogreatanadvantageastocompensatemanydefectsincivilgovernment。Frezier,whovisitedPeruin1713,representsLimaascontainingbetweentwenty—fiveandtwenty—eightthousandinhabitants。Ulloa,whoresidedinthesamecountrybetween1740
and1746,representsitascontainingmorethanfiftythousand。
ThedifferenceintheiraccountsofthepopulousnessofseveralotherprincipaltownsinChiliandPeruisnearlythesame;andasthereseemstobenoreasontodoubtofthegoodinformationofeither,itmarksanincreasewhichisscarceinferiortothatoftheEnglishcolonies。America,therefore,isanewmarketfortheproduceofitsownsilvermines,ofwhichthedemandmustincreasemuchmorerapidlythanthatofthemostthrivingcountryinEurope。
Thirdly,theEastIndiesisanothermarketfortheproduceofthesilverminesofAmerica,andamarketwhich,fromthetimeofthefirstdiscoveryofthosemines,hasbeencontinuallytakingoffagreaterandagreaterquantityofsilver。Sincethattime,thedirecttradebetweenAmericaandtheEastIndies,whichiscarriedonbymeansoftheAcapulcoships,hasbeencontinuallyaugmenting,andtheindirectintercoursebythewayofEuropehasbeenaugmentinginastillgreaterproportion。
Duringthesixteenthcentury,thePortugueseweretheonlyEuropeannationwhocarriedonanyregulartradetotheEastIndies。InthelastyearsofthatcenturytheDutchbeguntoencroachuponthismonopoly,andinafewyearsexpelledthemfromtheirprincipalsettlementsinIndia。DuringthegreaterpartofthelastcenturythosetwonationsdividedthemostconsiderablepartoftheEastIndiatradebetweenthem;thetradeoftheDutchcontinuallyaugmentinginastillgreaterproportionthanthatofthePortuguesedeclined。TheEnglishandFrenchcarriedonsometradewithIndiainthelastcentury,butithasbeengreatlyaugmentedinthecourseofthepresent。TheEastIndiatradeoftheSwedesandDanesbeganinthecourseofthepresentcentury。EventheMuscovitesnowtraderegularlywithChinabyasortofcaravanswhichgooverlandthroughSiberiaandTartarytoPekin。TheEastIndiatradeofallthesenations,ifweexceptthatoftheFrench,whichthelastwarhadwellnighannihilated,hadbeenalmostcontinuallyaugmenting。TheincreasingconsumptionofEastIndiagoodsinEuropeis,itseems,sogreatastoaffordagradualincreaseofemploymenttothemall。Tea,forexample,wasadrugverylittleusedinEuropebeforethemiddleofthelastcentury。AtpresentthevalueoftheteaannuallyimportedbytheEnglishEastIndiaCompany,fortheuseoftheirowncountrymen,amountstomorethanamillionandahalfayear;andeventhisisnotenough;agreatdealmorebeingconstantlysmuggledintothecountryfromtheportsofHolland,fromGottenburghinSweden,andfromthecoastofFrancetoo,aslongastheFrenchEastIndiaCompanywasinprosperity。
TheconsumptionoftheporcelainofChina,ofthespiceriesoftheMoluccas,ofthepiecegoodsofBengal,andofinnumerableotherarticles,hasincreasedverynearlyinalikeproportion。
ThetonnageaccordinglyofalltheEuropeanshippingemployedintheEastIndiatrade,atanyonetimeduringthelastcentury,wasnot,perhaps,muchgreaterthanthatoftheEnglishEastIndiaCompanybeforethelatereductionoftheirshipping。
ButintheEastIndies,particularlyinChinaandIndostan,thevalueofthepreciousmetals,whentheEuropeansfirstbegantotradetothosecountries,wasmuchhigherthaninEurope;anditstillcontinuestobeso。Inricecountries,whichgenerallyyieldtwo,sometimesthreecropsintheyear,eachofthemmoreplentifulthananycommoncropofcorn,theabundanceoffoodmustbemuchgreaterthaninanycorncountryofequalextent。
Suchcountriesareaccordinglymuchmorepopulous。Inthem,too,therich,havingagreatersuperabundanceoffoodtodisposeofbeyondwhattheythemselvescanconsume,havethemeansofpurchasingamuchgreaterquantityofthelabourofotherpeople。
TheretinueofagrandeeinChinaorIndostanaccordinglyis,byallaccounts,muchmorenumerousandsplendidthanthatoftherichestsubjectsinEurope。Thesamesuperabundanceoffood,ofwhichtheyhavethedisposal,enablesthemtogiveagreaterquantityofitforallthosesingularandrareproductionswhichnaturefurnishesbutinverysmallquantities;suchasthepreciousmetalsandthepreciousstones,thegreatobjectsofthecompetitionoftherich。Thoughthemines,therefore,whichsuppliedtheIndianmarkethadbeenasabundantasthosewhichsuppliedtheEuropean,suchcommoditieswouldnaturallyexchangeforagreaterquantityoffoodinIndiathaninEurope。ButthemineswhichsuppliedtheIndianmarketwiththepreciousmetalsseemtohavebeenagooddeallessabundant,andthosewhichsupplieditwiththepreciousstonesagooddealmoreso,thanthemineswhichsuppliedtheEuropean。Thepreciousmetals,therefore,wouldnaturallyexchangeinIndiaforsomewhatagreaterquantityofthepreciousstones,andforamuchgreaterquantityoffoodthaninEurope。Themoneypriceofdiamonds,thegreatestofallsuperfluities,wouldbesomewhatlower,andthatoffood,thefirstofallnecessaries,agreatdeallowerintheonecountrythanintheother。Buttherealpriceoflabour,therealquantityofthenecessariesoflifewhichisgiventothelabourer,ithasalreadybeenobserved,islowerbothinChinaandIndostan,thetwogreatmarketsofIndia,thanitisthroughthegreaterpartofEurope。Thewagesofthelabourerwilltherepurchaseasmallerquantityoffood;andasthemoneypriceoffoodismuchlowerinIndiathaninEurope,themoneypriceoflabouristhereloweruponadoubleaccount;uponaccountbothofthesmallquantityoffoodwhichitwillpurchase,andofthelowpriceofthatfood。Butincountriesofequalartandindustry,themoneypriceofthegreaterpartofmanufactureswillbeinproportiontothemoneypriceoflabour;andinmanufacturingartandindustry,ChinaandIndostan,thoughinferior,seemnottobemuchinferiortoanypartofEurope。Themoneypriceofthegreaterpartofmanufactures,therefore,willnaturallybemuchlowerinthosegreatempiresthanitisanywhereinEurope。
ThroughthegreaterpartofEurope,too,theexpenseofland—carriageincreasesverymuchboththerealandnominalpriceofmostmanufactures。Itcostsmorelabour,andthereforemoremoney,tobringfirstthematerials,andafterwardsthecompletemanufacturetomarket。InChinaandIndostantheextentandvarietyofinlandnavigationsavethegreaterpartofthislabour,andconsequentlyofthismoney,andtherebyreducestilllowerboththerealandthenominalpriceofthegreaterpartoftheirmanufactures。Uponallthoseaccountsthepreciousmetalsaxeacommoditywhichitalwayshasbeen,andstillcontinuestobe,extremelyadvantageoustocarryfromEuropetoIndia。Thereisscarceanycommoditywhichbringsabetterpricethere;orwhich,inproportiontothequantityoflabourandcommoditieswhichitcostsinEurope,willpurchaseorcommandagreaterquantityoflabourandcommoditiesinIndia。Itismoreadvantageous,too,tocarrysilverthitherthangold;becauseinChina,andthegreaterpartoftheothermarketsofIndia,theproportionbetweenfinesilverandfinegoldisbutasten,oratmostastwelve,toone;whereasinEuropeitisasfourteenorfifteentoone。InChina,andthegreaterpartoftheothermarketsofIndia,ten,oratmosttwelve,ouncesofsilverwillpurchaseanounceofgold;inEuropeitrequiresfromfourteentofifteenounces。Inthecargoes,therefore,ofthegreaterpartofEuropeanshipswhichsailtoIndia,silverhasgenerallybeenoneofthemostvaluablearticles。ItisthemostvaluablearticleintheAcapulcoshipswhichsailtoManilla。Thesilverofthenewcontinentseemsinthismannertobeoneoftheprincipalcommoditiesbywhichthecommercebetweenthetwoextremitiesoftheoldoneiscarriedon,anditisbymeansofit,inagreatmeasure,thatthosedistantpartsoftheworldareconnectedwithoneanother。
Inordertosupplysoverywidelyextendedamarket,thequantityofsilverannuallybroughtfromtheminesmustnotonlybesufficienttosupportthatcontinualincreasebothofcoinandofplatewhichisrequiredinallthrivingcountries;buttorepairthatcontinualwasteandconsumptionofsilverwhichtakesplaceinallcountrieswherethatmetalisused。
Thecontinualconsumptionofthepreciousmetalsincoinbywearing,andinplatebothbywearingandcleaning,isverysensible,andincommoditiesofwhichtheuseissoverywidelyextended,wouldalonerequireaverygreatannualsupply。Theconsumptionofthosemetalsinsomeparticularmanufactures,thoughitmaynotperhapsbegreateruponthewholethanthisgradualconsumption,is,however,muchmoresensible,asitismuchmorerapid。InthemanufacturesofBirminghamalonethequantityofgoldandsilverannuallyemployedingildingandplating,andtherebydisqualifiedfromeverafterwardsappearingintheshapeofthosemetals,issaidtoamounttomorethanfiftythousandpoundssterling。WemayfromthenceformsomenotionhowgreatmustbetheannualconsumptioninallthedifferentpartsoftheworldeitherinmanufacturesofthesamekindwiththoseofBirmingham,orinlaces,embroideries,goldandsilverstuffs,thegildingofbooks,furniture,etc。A
considerablequantity,too,mustbeannuallylostintransportingthosemetalsfromoneplacetoanotherbothbyseaandbyland。
InthegreaterpartofthegovernmentsofAsia,besides,thealmostuniversalcustomofconcealingtreasuresinthebowelsoftheearth,ofwhichtheknowledgefrequentlydieswiththepersonwhomakestheconcealment,mustoccasionthelossofastillgreaterquantity。
ThequantityofgoldandsilverimportedatbothCadizandLisbon(includingnotonlywhatcomesunderregister,butwhatmaybesupposedtobesmuggled)amounts,accordingtothebestaccounts,toaboutsixmillionssterlingayear。
AccordingtoMr。MeggenstheannualimportationofthepreciousmetalsintoSpain,atanaverageofsixyears,viz。,from1748to1753,bothinclusive;andintoPortugal,atanaverageofsevenyears,viz。,from1747to1753,bothinclusive,amountedinsilverto1,101,107poundsweight;andingoldto29,940poundsweight。Thesilver,atsixty—twoshillingsthepoundTroy,amountstoL3,413,43110s。sterling。Thegold,atforty—fourguineasandahalfthepoundTroy,amountstoL2,333,44614s。sterling。BothtogetheramounttoL5,746,8784s。
sterling。Theaccountofwhatwasimportedunderregisterheassuresusisexact。Hegivesusthedetailoftheparticularplacesfromwhichthegoldandsilverwerebrought,andoftheparticularquantityofeachmetal,which,accordingtotheregister,eachofthemafforded。Hemakesanallowance,too,forthequantityofeachmetalwhichhesupposesmayhavebeensmuggled。Thegreatexperienceofthisjudiciousmerchantrendershisopinionofconsiderableweight。
Accordingtotheeloquentand,sometimes,well—informedauthorofthePhilosophicalandPoliticalHistoryoftheEstablishmentoftheEuropeansinthetwoIndies,theannualimportationofregisteredgoldandsilverintoSpain,atanaverageofelevenyears,viz。,from1754to1764,bothinclusive,amountedto13,984,1853/4piastresoftenreals。Onaccountofwhatmayhavebeensmuggled,however,thewholeannualimportation,hesupposes,mayhaveamountedtoseventeenmillionsofpiastres,which,at4s。6d。thepiastre,isequaltoL3,825,000sterling。Hegivesthedetail,too,oftheparticularplacesfromwhichthegoldandsilverwerebrought,andoftheparticularquantitiesofeachmetalwhich,accordingtotheregister,eachofthemafforded。Heinformsus,too,thatifweweretojudgeofthequantityofgoldannuallyimportedfromtheBrazilsintoLisbonbytheamountofthetaxpaidtotheKingofPortugal,whichitseemsisone—fifthofthestandardmetal,wemightvalueitateighteenmillionsofcruzadoes,orforty—fivemillionsofFrenchlivres,equaltoabouttwomillionssterling。
Onaccountofwhatmayhavebeensmuggled,however,wemaysafely,hesays,addtothesumaneighthmore,orL250,000
sterling,sothatthewholewillamounttoL2,250,000sterling。
Accordingtothisaccount,therefore,thewholeannualimportationofthepreciousmetalsintobothSpainandPortugalamountstoaboutL6,075,000sterling。
Severalotherverywellauthenticated,thoughmanuscript,accounts,Ihavebeenassured,agreeinmakingthiswholeannualimportationamountatanaveragetoaboutsixmillionssterling;
sometimesalittlemore,sometimesalittleless。
TheannualimportationofthepreciousmetalsintoCadizandLisbon,indeed,isnotequaltothewholeannualproduceoftheminesofAmerica。SomepartissentannuallybytheAcapulcoshipstoManilla;somepartisemployedinthecontrabandtradewhichtheSpanishcoloniescarryonwiththoseofotherEuropeannations;andsomepart,nodoubtremainsinthecountry。TheminesofAmerica,besides,arebynomeanstheonlygoldandsilverminesintheworld。Theyare,however,byfarthemostabundant。Theproduceofalltheothermineswhichareknownisinsignificant,itisacknowledged,incomparisonwiththeirs;andthefargreaterpartoftheirproduce,itislikewiseacknowledged,isannuallyimportedintoCadizandLisbon。ButtheconsumptionofBirminghamalone,attherateoffiftythousandpoundsayear,isequaltothehundred—and—twentiethpartofthisannualimportationattherateofsixmillionsayear。Thewholeannualconsumptionofgoldandsilver,therefore,inallthedifferentcountriesoftheworldwherethosemetalsareused,mayperhapsbenearlyequaltothewholeannualproduce。Theremaindermaybenomorethansufficienttosupplytheincreasingdemandofallthrivingcountries。