ThebountyupontheexportationofcornnecessarilyoperatesexactlyinthesamewayasthisabsurdpolicyofSpainandPortugal。Whateverbetheactualstateoftillage,itrendersourcornsomewhatdearerinthehomemarketthanitotherwisewouldbeinthatstate,andsomewhatcheaperintheforeign;andastheaveragemoneypriceofcornregulatesmoreorlessthatofallothercommodities,itlowersthevalueofsilverconsiderablyintheone,andtendstoraiseitalittleintheother。Itenablesforeigners,theDutchinparticular,notonlytoeatourcorncheaperthantheyotherwisecoulddo,butsometimestoeatitcheaperthanevenourownpeoplecandouponthesameoccasions,asweareassuredbyanexcellentauthority,thatofSirMatthewDecker。Ithindersourownworkmenfromfurnishingtheirgoodsforsosmallaquantityofsilverastheyotherwisemightdo;andenablestheDutchtofurnishtheirsforasmaller。Ittendstorenderourmanufacturessomewhatdearerineverymarket,andtheirssomewhatcheaperthantheyotherwisewouldbe,andconsequentlytogivetheirindustryadoubleadvantageoverourown。
Thebounty,asitraisesinthehomemarketnotsomuchtherealasthenominalpriceofourcorn,asitaugments,notthequantityoflabourwhichacertainquantityofcorncanmaintainandemploybutonlythequantityofsilverwhichitwillexchangefor,itdiscouragesourmanufactures,withoutrenderinganyconsiderableserviceeithertoourfarmersorcountrygentlemen。
Itputs,indeed,alittlemoremoneyintothepocketsofboth,anditwillperhapsbesomewhatdifficulttopersuadethegreaterpartofthemthatthisisnotrenderingthemaveryconsiderableservice。Butifthismoneysinksinitsvalue,inthequantityoflabour,provisions,andhomemadecommoditiesofalldifferentkindswhichitiscapableofpurchasingasmuchasitrisesinitsquantity,theservicewillbelittlemorethannominalandimaginary。
Thereis,perhaps,butonesetofmeninthewholecommonwealthtowhomthebountyeitherwasorcouldbeessentiallyserviceable。Thesewerethecornmerchants,theexportersandimportersofcorn。Inyearsofplentythebountynecessarilyoccasionedagreaterexportationthanwouldotherwisehavetakenplace;andbyhinderingtheplentyofoneyearfromrelievingthescarcityofanother,itoccasionedinyearsofscarcityagreaterimportationthanwouldotherwisehavebeennecessary。Itincreasedthebusinessofthecornmerchantinboth;andinyearsofscarcity,itnotonlyenabledhimtoimportagreaterquantity,buttosellitforabetterprice,andconsequentlywithagreaterprofitthanhecouldotherwisehavemade,iftheplentyofoneyearhadnotbeenmoreorlesshinderedfromrelievingthescarcityofanother。Itisinthissetofmen,accordingly,thatIhaveobservedthegreatestzealforthecontinuanceorrenewalofthebounty。
Ourcountrygentlemen,whentheyimposedthehighdutiesupontheimportationofforeigncorn,whichintimesofmoderateplentyamounttoaprohibition,andwhentheyestablishedthebounty,seemtohaveimitatedtheconductofourmanufacturers。
Bytheoneinstitution,theysecuredtothemselvesthemonopolyofthehomemarket,andbytheothertheyendeavouredtopreventthatmarketfromeverbeingoverstockedwiththeircommodity。Byboththeyendeavouredtoraiseitsrealvalue,inthesamemannerasourmanufacturershad,bythelikeinstitutions,raisedtherealvalueofmanydifferentsortsofmanufacturedgoods。Theydidnotperhapsattendtothegreatandessentialdifferencewhichnaturehasestablishedbetweencornandalmosteveryothersortofgoods。When,eitherbythemonopolyofthehomemarket,orbyabountyuponexportation,youenableourwoollenorlinenmanufacturerstoselltheirgoodsforsomewhatabetterpricethantheyotherwisecouldgetforthem,youraise,notonlythenominal,buttherealpriceofthosegoods。Yourenderthemequivalenttoagreaterquantityoflabourandsubsistence,youincreasenotonlythenominal,buttherealprofit,therealwealthandrevenueofthosemanufacturers,andyouenablethemeithertolivebetterthemselves,ortoemployagreaterquantityoflabourinthoseparticularmanufactures。Youreallyencouragethosemanufactures,anddirecttowardsthemagreaterquantityoftheindustryofthecountrythanwhatwouldprobablygotothemofitsownaccord。Butwhenbythelikeinstitutionsyouraisethenominalormoney—priceofcorn,youdonotraiseitsrealvalue。Youdonotincreasetherealwealth,therealrevenueeitherofourfarmersorcountrygentlemen。Youdonotencouragethegrowthofcornbecauseyoudonotenablethemtomaintainandemploymorelabourersinraisingit。Thenatureofthingshasstampeduponcornarealvaluewhichcannotbealteredbymerelyalteringitsmoneyprice。Nobountyuponexportation,nomonopolyofthehomemarket,canraisethatvalue。Thefreestcompetitioncannotlowerit。Throughtheworldingeneralthatvalueisequaltothequantityoflabourwhichitcanmaintain,andineveryparticularplaceitisequaltothequantityoflabourwhichitcanmaintainintheway,whetherliberal,moderate,orscanty,inwhichlabouriscommonlymaintainedinthatplace。Woollenorlinenclotharenottheregulatingcommoditiesbywhichtherealvalueofallothercommoditiesmustbefinallymeasuredanddetermined;cornis。Therealvalueofeveryothercommodityisfinallymeasuredanddeterminedbytheproportionwhichitsaveragemoneypricebearstotheaveragemoneypriceofcorn。Therealvalueofcorndoesnotvarywiththosevariationsinitsaveragemoneyprice,whichsometimesoccurfromonecenturytoanother。Itistherealvalueofsilverwhichvarieswiththem。
Bountiesupontheexportationofanyhomemadecommodityareliable,firsttothatgeneralobjectionwhichmaybemadetoallthedifferentexpedientsofthemercantilesystem;theobjectionofforcingsomepartoftheindustryofthecountryintoachannellessadvantageousthanthatinwhichitwouldrunofitsownaccord:and,secondly,totheparticularobjectionofforcingit,notonlyintoachannelthatislessadvantageous,butintoonethatisactuallydisadvantageous;thetradewhichcannotbecarriedonbutbymeansofabountybeingnecessarilyalosingtrade。Thebountyupontheexportationofcornisliabletothisfurtherobjection,thatitcaninnorespectpromotetheraisingofthatparticularcommodityofwhichitwasmeanttoencouragetheproduction。Whenourcountrygentlemen,therefore,demandedtheestablishmentofthebounty,thoughtheyactedinimitationofourmerchantsandmanufacturers,theydidnotactwiththatcompletecomprehensionoftheirowninterestwhichcommonlydirectstheconductofthosetwootherordersofpeople。Theyloadedthepublicrevenuewithaveryconsiderableexpense;theyimposedaveryheavytaxuponthewholebodyofthepeople;buttheydidnot,inanysensibledegree,increasetherealvalueoftheirowncommodity;andbyloweringsomewhattherealvalueofsilver,theydiscouragedinsomedegree,thegeneralindustryofthecountry,and,insteadofadvancing,retardedmoreorlesstheimprovementoftheirownlands,whichnecessarilydependsuponthegeneralindustryofthecountry。
Toencouragetheproductionofanycommodity,abountyuponproduction,oneshouldimagine,wouldhaveamoredirectoperationthanoneuponexportation。Itwould,besides,imposeonlyonetaxuponthepeople,thatwhichtheymustcontributeinordertopaythebounty。Insteadofraising,itwouldtendtolowerthepriceofthecommodityinthehomemarket;andthereby,insteadofimposingasecondtaxuponthepeople,itmight,atleast,inpart,repaythemforwhattheyhadcontributedtothefirst。Bountiesuponproduction,however,havebeenveryrarelygranted。Theprejudicesestablishedbythecommercialsystemhavetaughtustobelievethatnationalwealtharisesmoreimmediatelyfromexportationthanfromproduction。Ithasbeenmorefavouredaccordingly,asthemoreimmediatemeansofbringingmoneyintothecountry。Bountiesuponproduction,ithasbeensaidtoo,havebeenfoundbyexperiencemoreliabletofraudsthanthoseuponexportation。Howfarthisistrue,Iknownot。Thatbountiesuponexportationhavebeenabusedtomanyfraudulentpurposesisverywellknown。Butitisnottheinterestofmerchantsandmanufacturers,thegreatinventorsofalltheseexpedients,thatthehomemarketshouldbeoverstockedwiththeirgoods,aneventwhichabountyuponproductionmightsometimesoccasion。Abountyuponexportation,byenablingthemtosendabroadthesurpluspart,andtokeepupthepriceofwhatremainsinthehomemarket,effectuallypreventsthis。Ofalltheexpedientsofthemercantilesystem,accordingly,itistheoneofwhichtheyarethefondest。Ihaveknownthedifferentundertakersofsomeparticularworksagreeprivatelyamongthemselvestogiveabountyoutoftheirownpocketsupontheexportationofacertainproportionofthegoodswhichtheydealtin。Thisexpedientsucceededsowellthatitmorethandoubledthepriceoftheirgoodsinthehomemarket,notwithstandingaveryconsiderableincreaseintheproduce。Theoperationofthebountyuponcornmusthavebeenwonderfullydifferentifithasloweredthemoneypriceofthatcommodity。
Somethinglikeabountyuponproduction,however,hasbeengranteduponsomeparticularoccasions。Thetonnagebountiesgiventothewhite—herringandwhalefisheriesmay,perhaps,beconsideredassomewhatofthisnature。Theytenddirectly,itmaybesupposed,torenderthegoodscheaperinthehomemarketthantheyotherwisewouldbe。Inotherrespectstheireffects,itmustbeacknowledged,arethesameasthoseofbountiesuponexportation。Bymeansofthemapartofthecapitalofthecountryisemployedinbringinggoodstomarket,ofwhichthepricedoesnotrepaythecosttogetherwiththeordinaryprofitsofstock。
Butthoughthetonnagebountiesofthosefisheriesdonotcontributetotheopulenceofthenation,itmayperhapsbethoughtthattheycontributetoitsdefencebyaugmentingthenumberofitssailorsandshipping。This,itmaybealleged,maysometimesbedonebymeansofsuchbountiesatamuchsmallerexpensethanbykeepingupagreatstandingnavy,ifImayusesuchanexpression,inthesamewayasastandingarmy。
Notwithstandingthesefavourableallegations,however,thefollowingconsiderationsdisposemetobelievethat,ingrantingatleastoneofthesebounties,thelegislaturehasbeenverygrosslyimposedupon。
First,theherringbussbountyseemstoolarge。
Fromthecommencementofthewinterfishing,1771,totheendofthewinterfishing,1781,thetonnagebountyupontheherringbussfisheryhasbeenatthirtyshillingstheton。DuringtheseelevenyearsthewholenumberofbarrelscaughtbytheherringbussfisheryofScotlandamountedto378,347。Theherringscaughtandcuredatseaarecalledsea—sticks。Inordertorenderthemwhatarecalledmerchantableherrings,itisnecessarytorepackthemwithanadditionalquantityofsalt;andinthiscase,itisreckonedthatthreebarrelsofsea—sticksareusuallyrepackedintotwobarrelsofmerchantableherrings。Thenumberofbarrelsofmerchantableherrings,therefore,caughtduringtheseelevenyearswillamountonly,accordingtothisaccount,to252,2311/3。DuringtheseelevenyearsthetonnagebountiespaidamountedtoL155,46311s。orto8s。21/4d。uponeverybarrelofseasticks,andto12s。33/4d。uponeverybarrelofmerchantableherrings。
ThesaltwithwhichtheseherringsarecuredissometimesScotchandsometimesforeignsalt,bothwhicharedeliveredfreeofallexcisedutytothefish—curers。TheexcisedutyuponScotchsaltisatpresent1s。6d。,thatuponforeignsalt10s。
thebushel。Abarrelofherringsissupposedtorequireaboutonebushelandone—fourthofabushelforeignsalt。TwobushelsarethesupposedaverageofScotchsalt。Iftheherringsareenteredforexportation,nopartofthisdutyispaidup;ifenteredforhomeconsumption,whethertheherringswerecuredwithforeignorwithScotchsalt,onlyoneshillingthebarrelispaidup。ItwastheoldScotchdutyuponabushelofsalt,thequantitywhich,atalowestimation,hadbeensupposednecessaryforcuringabarrelofherrings。InScotland,foreignsaltisverylittleusedforanyotherpurposebutthecuringoffish。Butfromthe5thApril1771tothe5thApril1782,thequantityofforeignsaltimportedamountedto936,974bushels,ateighty—fourpoundsthebushel:
thequantityofScotchsalt,deliveredfromtheworkstothefish—curers,tonomorethan168,226,atfifty—sixpoundsthebushelonly。Itwouldappear,therefore,thatitisprincipallyforeignsaltthatisusedinthefisheries。Uponeverybarrelofherringsexportedthereis,besides,abountyof2s。8d。,andmorethantwo—thirdsofthebusscaughtherringsareexported。
Putallthesethingstogetherandyouwillfindthat,duringtheseelevenyears,everybarrelofbusscaughtherrings,curedwithScotchsaltwhenexported,hascostgovernmentL17s。5
3/4d。;andwhenenteredforhomeconsumption14s。33/4d。;andthateverybarrelcuredwithforeignsalt,whenexported,hascostgovernmentL17s。53/4d。;andwhenenteredforhomeconsumptionL1。3s。93/4d。Thepriceofabarrelofgoodmerchantableherringsrunsfromseventeenandeighteentofourandfiveandtwentyshillings,aboutaguineaatanaverage。
Secondly,thebountytothewhite—herringfisheryisatonnagebounty;andisproportionedtotheburdenoftheship,nottoherdiligenceorsuccessinthefishery;andithas,Iamafraid,beentoocommonforvesselstofitoutforthesolepurposeofcatching,notthefish,butthebounty。Intheyear1759,whenthebountywasatfiftyshillingstheton,thewholebussfisheryofScotlandbroughtinonlyfourbarrelsofsea—sticks。Inthatyeareachbarrelofsea—stickscostgovernmentinbountiesaloneL11315s。;eachbarrelofmerchantableherringsL1597s。6d。
Thirdly,themodeoffishingforwhichthistonnagebountyinthewhite—herringfisheryhasbeengiven(bybussesordeckedvesselsfromtwentytoeightytonsburthen),seemsnotsowelladaptedtothesituationofScotlandastothatofHolland,fromthepracticeofwhichcountryitappearstohavebeenborrowed。
Hollandliesatagreatdistancefromtheseastowhichherringsareknownprincipallytoresort,andcan,therefore,carryonthatfisheryonlyindeckedvessels,whichcancarrywaterandprovisionssufficientforavoyagetoadistantsea。ButtheHebridesorwesternislands,theislandsofShetland,andthenorthernandnorthwesterncoastsofScotland,thecountriesinwhoseneighbourhoodtheherringfisheryisprincipallycarriedon,areeverywhereintersectedbyarmsofthesea,whichrunupaconsiderablewayintotheland,andwhich,inthelanguageofthecountry,arecalledsea—lochs。Itistothesesea—lochsthattheherringsprincipallyresortduringtheseasonsinwhichtheyvisitthoseseas;forthevisitsofthisand,Iamassured,ofmanyothersortsoffisharenotquiteregularandconstant。A
boatfishery,therefore,seemstobethemodeoffishingbestadaptedtothepeculiarsituationofScotland,thefisherscarryingtheherringsonshore,asfastastheyaretaken,tobeeithercuredorconsumedfresh。Butthegreatencouragementwhichabountyofthirtyshillingsthetongivestothebussfisheryisnecessarilyadiscouragementtotheboatfishery,which,havingnosuchbounty,cannotbringitscuredfishtomarketuponthesametermsasthebussfishery。Theboatfishery,accordingly,whichbeforetheestablishmentofthebussbountywasveryconsiderable,andissaidhaveemployedanumberofseamennotinferiortowhatthebussfisheryemploysatpresent,isnowgonealmostentirelytodecay。Oftheformerextent,however,ofthisnowruinedandabandonedfishery,ImustacknowledgethatI
cannotpretendtospeakwithmuchprecision。Asnobountywaspaidupontheoutfitoftheboatfishery,noaccountwastakenofitbytheofficersofthecustomsorsaltduties。
Fourthly,inmanypartsofScotland,duringcertainseasonsoftheyear,herringsmakenoinconsiderablepartofthefoodofthepeople。Abounty,whichtendedtolowertheirpriceinthehomemarket,mightcontributeagooddealtothereliefofagreatnumberofourfellow—subjects,whosecircumstancesarebynomeansaffluent。Buttheherringbussbountycontributestonosuchgoodpurpose。Ithasruinedtheboatfishery,whichis,byfar,thebestadaptedforthesupplyofthehomemarket,andtheadditionalbountyof2s。8d。thebarreluponexportationcarriesthegreaterpart,morethantwo—thirds,oftheproduceofthebussfisheryabroad。Betweenthirtyandfortyyearsago,beforetheestablishmentofthebussbounty,fifteenshillingsthebarrel,Ihavebeenassured,wasthecommonpriceofwhiteherrings。Betweentenandfifteenyearsago,beforetheboatfisherywasentirelyruined,thepriceissaidtohaverunfromseventeentotwentyshillingsthebarrel。Fortheselastfiveyears,ithas,atanaverage,beenattwenty—fiveshillingsthebarrel。Thishighprice,however,mayhavebeenowingtotherealscarcityoftheherringsuponthecoastofScotland。Imustobserve,too,thatthecaskorbarrel,whichisusuallysoldwiththeherrings,andofwhichthepriceisincludedinalltheforegoingprices,has,sincethecommencementoftheAmericanwar,risentoaboutdoubleitsformerprice,orfromaboutthreeshillingstoaboutsixshillings。ImustlikewiseobservethattheaccountsIhavereceivedofthepricesofformertimeshavebeenbynomeansquiteuniformandconsistent;andanoldmanofgreataccuracyandexperiencehasassuredmethat,morethanfiftyyearsago,aguineawastheusualpriceofabarrelofgoodmerchantableherrings;andthis,Iimagine,maystillbelookeduponastheaverageprice。Allaccounts,however,Ithink,agreethatthepricehasnotbeenloweredinthehomemarketinconsequenceofthebussbounty。
Whentheundertakersoffisheries,aftersuchliberalbountieshavebeenbestoweduponthem,continuetoselltheircommodityatthesame,orevenatahigherpricethantheywereaccustomedtodobefore,itmightbeexpectedthattheirprofitsshouldbeverygreat;anditisnotimprobablethatthoseofsomeindividualsmayhavebeenso。Ingeneral,however,Ihaveeveryreasontobelievetheyhavebeenquiteotherwise。Theusualeffectofsuchbountiesistoencouragerashundertakerstoadventureinabusinesswhichtheydonotunderstand,andwhattheylosebytheirownnegligenceandignorancemorethancompensatesallthattheycangainbytheutmostliberalityofgovernment。In1750,bythesameact,whichfirstgavethebountyofthirtyshillingsthetonfortheencouragementofthewhite—herringfishery(the23rdGeorgeII,c。24),ajoint—stockcompanywaserected,withacapitaloffivehundredthousandpounds,towhichthesubscribers(overandaboveallotherencouragements,thetonnagebountyjustnowmentioned,theexportationbountyoftwoshillingsandeightpencethebarrel,thedeliveryofbothBritishandforeignsaltdutyfree)were,duringthespaceoffourteenyears,foreveryhundredpoundswhichtheysubscribedandpaidintothestockofthesociety,entitledtothreepoundsayear,tobepaidbythereceiver—generalofthecustomsinequalhalf—yearlypayments。
Besidesthisgreatcompany,theresidenceofwhosegovernoranddirectorswastobeinLondon,itwasdeclaredlawfultoerectdifferentfishing—chambersinallthedifferentoutportsofthekingdom,providedasumnotlessthantenthousandpoundswassubscribedintothecapitalofeach,tobemanagedatitsownrisk,andforitsownprofitandloss。Thesameannuity,andthesameencouragementsofallkinds,weregiventothetradeofthoseinferiorchambersastothatofthegreatcompany。Thesubscriptionofthegreatcompanywassoonfilledup,andseveraldifferentfishing—chamberswereerectedinthedifferentoutportsofthekingdom。Inspiteofalltheseencouragements,almostallthosedifferentcompanies,bothgreatandsmall,losteitherthewhole,orthegreaterpartoftheircapitals;scarceavestigenowremainsofanyofthem,andthewhite—herringfisheryisnowentirely,oralmostentirely,carriedonbyprivateadventurers。
Ifanyparticularmanufacturewasnecessary,indeed,forthedefenceofthesociety,itmightnotalwaysbeprudenttodependuponourneighboursforthesupply;andifsuchmanufacturecouldnototherwisebesupportedathome,itmightnotbeunreasonablethatalltheotherbranchesofindustryshouldbetaxedinordertosupportit。ThebountiesupontheexportationofBritish—madesailclothandBritish—madegunpowdermay,perhaps,bothbevindicateduponthisprinciple。
Butthoughitcanveryseldombereasonabletotaxtheindustryofthegreatbodyofthepeopleinordertosupportthatofsomeparticularclassofmanufacturers,yetinthewantonnessofgreatprosperity,whenthepublicenjoysagreaterrevenuethanitknowswellwhattodowith,togivesuchbountiestofavouritemanufacturesmay,perhaps,beasnaturalastoincuranyotheridleexpense。Inpublicaswellasinprivateexpenses,greatwealthmay,perhaps,frequentlybeadmittedasanapologyforgreatfolly。Buttheremustsurelybesomethingmorethanordinaryabsurdityincontinuingsuchprofusionintimesofgeneraldifficultyanddistress。
Whatiscalledabountyissometimesnomorethanadrawback,andconsequentlyisnotliabletothesameobjectionsaswhatisproperlyabounty。Thebounty,forexample,uponrefinedsugarexportedmaybeconsideredasadrawbackofthedutiesuponthebrownandmuscovadosugarsfromwhichitismade。
Thebountyuponwroughtsilkexported,adrawbackofthedutiesuponrawandthrownsilkimported。Thebountyupongunpowderexported,adrawbackofthedutiesuponbrimstoneandsaltpetreimported。Inthelanguageofthecustomsthoseallowancesonlyarecalleddrawbackswhicharegivenupongoodsexportedinthesameforminwhichtheyareimported。Whenthatformhasbeensoalteredbymanufactureofanykindastocomeunderanewdenomination,theyarecalledbounties。
Premiumsgivenbythepublictoartistsandmanufacturerswhoexcelintheirparticularoccupationsarenotliabletothesameobjectionsasbounties。Byencouragingextraordinarydexterityandingenuity,theyservetokeepuptheemulationoftheworkmenactuallyemployedinthoserespectiveoccupations,andarenotconsiderableenoughtoturntowardsanyoneofthemagreatershareofthecapitalofthecountrythanwhatwouldgotoitofitsownaccord。Theirtendencyisnottooverturnthenaturalbalanceofemployments,buttorendertheworkwhichisdoneineachasperfectandcompleteaspossible。Theexpenseofpremiums,besides,isverytrifling;thatofbountiesverygreat。
Thebountyuponcornalonehassometimescostthepublicinoneyearmorethanthreehundredthousandpounds。
DIGRESSIONCONCERNINGTHECORNTRADEANDCORNLAWS
Icannotconcludethischapterconcerningbountieswithoutobservingthatthepraiseswhichhavebeenbestoweduponthelawwhichestablishesthebountyupontheexportationofcorn,anduponthatsystemofregulationswhichisconnectedwithit,arealtogetherunmerited。Aparticularexaminationofthenatureofthecorntrade,andoftheprincipalBritishlawswhichrelatetoit。willsufficientlydemonstratethetruthofthisassertion。
Thegreatimportanceofthissubjectmustjustifythelengthofthedigression。
Thetradeofthecornmerchantiscomposedoffourdifferentbranches,which,thoughtheymaysometimesbeallcarriedonbythesameperson,areintheirownnaturefourseparateanddistincttrades。Theseare,first,thetradeoftheinlanddealer;secondly,thatofthemerchantimporterforhomeconsumption;thirdly,thatofthemerchantexporterofhomeproduceforforeignconsumption;and,fourthly,thatofthemerchantcarrier,oroftheimporterofcorninordertoexportitagain。
I。Theinterestoftheinlanddealer,andthatofthegreatbodyofthepeople,howoppositesoevertheymayatfirstsightappear,are,eveninyearsofthegreatestscarcity,exactlythesame。Itishisinteresttoraisethepriceofhiscornashighastherealscarcityoftheseasonrequires,anditcanneverbehisinteresttoraiseithigher。Byraisingthepricehediscouragestheconsumption,andputseverybodymoreorless,butparticularlytheinferiorranksofpeople,uponthriftandgoodmanagement。If,byraisingittoohigh,hediscouragestheconsumptionsomuchthatthesupplyoftheseasonislikelytogobeyondtheconsumptionoftheseason,andtolastforsometimeafterthenextcropbeginstocomein,herunsthehazard,notonlyoflosingaconsiderablepartofhiscornbynaturalcauses,butofbeingobligedtosellwhatremainsofitformuchlessthanwhathemighthavehadforitseveralmonthsbefore。Ifbynotraisingthepricehighenoughhediscouragestheconsumptionsolittlethatthesupplyoftheseasonislikelytofallshortoftheconsumptionoftheseason,henotonlylosesapartoftheprofitwhichhemightotherwisehavemade,butheexposesthepeopletosufferbeforetheendoftheseason,insteadofthehardshipsofadearth,thedreadfulhorrorsofafamine。Itistheinterestofthepeoplethattheirdaily,weekly,andmonthlyconsumptionshouldbeproportionedasexactlyaspossibletothesupplyoftheseason。Theinterestoftheinlandcorndealeristhesame。Bysupplyingthem,asnearlyashecanjudge,inthisproportion,heislikelytosellallhiscornforthehighestprice,andwiththegreatestprofit;andhisknowledgeofthestateofthecrop,andofhisdaily,weekly,andmonthlysales,enablehimtojudge,withmoreorlessaccuracy,howfartheyreallyaresuppliedinthismanner。Withoutintendingtheinterestofthepeople,heisnecessarilyled,byaregardtohisowninterest,totreatthem,eveninyearsofscarcity,prettymuchinthesamemannerastheprudentmasterofavesselissometimesobligedtotreathiscrew。Whenheforeseesthatprovisionsarelikelytorunshort,heputsthemuponshortallowance。Thoughfromexcessofcautionheshouldsometimesdothiswithoutanyrealnecessity,yetalltheinconvenienceswhichhiscrewcantherebysufferareinconsiderableincomparisonofthedanger,misery,andruintowhichtheymightsometimesbeexposedbyalessprovidentconduct。Thoughfromexcessofavarice,inthesamemanner,theinlandcornmerchantshouldsometimesraisethepriceofhiscornsomewhathigherthanthescarcityoftheseasonrequires,yetalltheinconvenienceswhichthepeoplecansufferfromthisconduct,whicheffectuallysecuresthemfromafamineintheendoftheseason,areinconsiderableincomparisonofwhattheymighthavebeenexposedtobyamoreliberalwayofdealinginthebeginningofit。Thecornmerchanthimselfislikelytosufferthemostbythisexcessofavarice;notonlyfromtheindignationwhichitgenerallyexcitesagainsthim,but,thoughheshouldescapetheeffectsofthisindignation,fromthequantityofcornwhichitnecessarilyleavesuponhishandsintheendoftheseason,andwhich,ifthenextseasonhappenstoprovefavourable,hemustalwayssellforamuchlowerpricethanhemightotherwisehavehad。
Wereitpossible,indeed,foronegreatcompanyofmerchantstopossessthemselvesofthewholecropofanextensivecountry,itmight,perhaps,betheirinteresttodealwithitastheDutcharesaidtodowiththespiceriesoftheMoluccas,todestroyorthrowawayaconsiderablepartofitinordertokeepupthepriceoftherest。Butitisscarcepossible,evenbytheviolenceoflaw,toestablishsuchanextensivemonopolywithregardtocorn;and,whereverthelawleavesthetradefree,itisofallcommoditiestheleastliabletobeengrossedormonopolizedbytheforceofafewlargecapitals,whichbuyupthegreaterpartofit。Notonlyitsvaluefarexceedswhatthecapitalsofafewprivatemenarecapableofpurchasing,but,supposingtheywerecapableofpurchasingit,themannerinwhichitisproducedrendersthispurchasepracticable。Asineverycivilisedcountryitisthecommodityofwhichtheannualconsumptionisthegreatest,soagreaterquantityofindustryisannuallyemployedinproducingcornthaninproducinganyothercommodity。Whenitfirstcomesfromtheground,too,itisnecessarilydividedamongagreaternumberofownersthananyothercommodity;andtheseownerscanneverbecollectedintooneplacelikeanumberofindependentmanufacturers,butarenecessarilyscatteredthroughallthedifferentcornersofthecountry。Thesefirstownerseitherimmediatelysupplytheconsumersintheirownneighbourhood,ortheysupplyotherinlanddealerswhosupplythoseconsumers。Theinlanddealersincorn,therefore,includingboththefarmerandthebaker,arenecessarilymorenumerousthanthedealersinanyothercommodity,andtheirdispersedsituationrendersitaltogetherimpossibleforthemtoenterintoanygeneralcombination。Ifinayearofscarcity,therefore,anyofthemshouldfindthathehadagooddealmorecornuponhandthan,atthecurrentprice,hecouldhopetodisposeofbeforetheendoftheseason,hewouldneverthinkofkeepingupthispricetohisownloss,andtothesolebenefitofhisrivalsandcompetitors,butwouldimmediatelylowerit,inordertogetridofhiscornbeforethenewcropbegantocomein。Thesamemotives,thesameinterests,whichwouldthusregulatetheconductofanyonedealer,wouldregulatethatofeveryother,andobligethemallingeneraltoselltheircornatthepricewhich,accordingtothebestoftheirjudgment,wasmostsuitabletothescarcityorplentyoftheseason。
WhoeverexamineswithattentionthehistoryofthedearthsandfamineswhichhaveafflictedanypartofEurope,duringeitherthecourseofthepresentorthatofthetwoprecedingcenturies,ofseveralofwhichwehaveprettyexactaccounts,willfind,Ibelieve,thatadearthneverhasarisenfromanycombinationamongtheinlanddealersincorn,norfromanyothercausebutarealscarcity,occasionedsometimesperhaps,andinsomeparticularplaces,bythewasteofwar,butinbyfarthegreatestnumberofcasesbythefaultoftheseasons;andthatafaminehasneverarisenfromanyothercausebuttheviolenceofgovernmentattempting,byimpropermeans,toremedytheinconveniencesofadearth。
Inanextensivecorncountry,betweenallthedifferentpartsofwhichthereisafreecommerceandcommunication,thescarcityoccasionedbythemostunfavourableseasonscanneverbesogreatastoproduceafamine;andthescantiestcrop,ifmanagedwithfrugalityandeconomy,willmaintainthroughtheyearthesamenumberofpeoplethatarecommonlyfedonamoreaffluentmannerbyoneofmoderateplenty。Theseasonsmostunfavourabletothecroparethoseofexcessivedroughtorexcessiverain。Butascorngrowsequallyuponhighandlowlands,upongroundsthataredisposedtobetoowet,anduponthosethataredisposedtobetoodry,eitherthedroughtortherainwhichishurtfultoonepartofthecountryisfavourabletoanother;andthoughbothinthewetandinthedryseasonthecropisagooddeallessthaninonemoreproperlytempered,yetinbothwhatislostinonepartofthecountryisinsomemeasurecompensatedbywhatisgainedintheother。Inricecountries,wherethecropnotonlyrequiresaverymoistsoil,butwhereinacertainperiodofitsgrowingitmustbelaidunderwater,theeffectsofadroughtaremuchmoredismal。Eveninsuchcountries,however,thedroughtis,perhaps,scarceeversouniversalasnecessarilytooccasionafamine,ifthegovernmentwouldallowafreetrade。ThedroughtinBengal,afewyearsago,mightprobablyhaveoccasionedaverygreatdearth。
Someimproperregulations,someinjudiciousrestraintsimposedbytheservantsoftheEastIndiaCompanyuponthericetrade,contributed,perhaps,toturnthatdearthintoafamine。
Whenthegovernment,inordertoremedytheinconveniencesofadearth,ordersallthedealerstoselltheircornatwhatitsupposesareasonableprice,iteitherhindersthemfrombringingittomarket,whichmaysometimesproduceafamineeveninthebeginningoftheseason;oriftheybringitthither,itenablesthepeople,andtherebyencouragesthemtoconsumeitsofastasmustnecessarilyproduceafaminebeforetheendoftheseason。
Theunlimited,unrestrainedfreedomofthecorntrade,asitistheonlyeffectualpreventativeofthemiseriesofafamine,soitisthebestpalliativeoftheinconveniencesofadearth;fortheinconveniencesofarealscarcitycannotberemedied,theycanonlybepalliated。Notradedeservesmorethefullprotectionofthelaw,andnotraderequiresitsomuch,becausenotradeissomuchexposedtopopularodium。
Inyearsofscarcitytheinferiorranksofpeopleimputetheirdistresstotheavariceofthecornmerchant,whobecomestheobjectoftheirhatredandindignation。Insteadofmakingprofituponsuchoccasions,therefore,heisoftenindangerofbeingutterlyruined,andofhavinghismagazinesplunderedanddestroyedbytheirviolence。Itisinyearsofscarcity,however,whenpricesarehigh,thatthecornmerchantexpectstomakehisprincipalprofit。Heisgenerallyincontractwithsomefarmerstofurnishhimforacertainnumberofyearswithacertainquantityofcornatacertainprice。Thiscontractpriceissettledaccordingtowhatissupposedtobethemoderateandreasonable,thatis,theordinaryoraverageprice,whichbeforethelateyearsofscarcitywascommonlyabouteight—and—twentyshillingsforthequarterofwheat,andforthatofothergraininproportion。Inyearsofscarcity,therefore,thecornmerchantbuysagreatpartofhiscornfortheordinaryprice,andsellsitforamuchhigher。Thatthisextraordinaryprofit,however,isnomorethansufficienttoputhistradeuponafairlevelwithothertrades,andtocompensatethemanylosseswhichhesustainsuponotheroccasions,bothfromtheperishablenatureofthecommodityitself,andfromthefrequentandunforeseenfluctuationsofitsprice,seemsevidentenough,fromthissinglecircumstance,thatgreatfortunesareasseldommadeinthisasinanyothertrade。Thepopularodium,however,whichattendsitinyearsofscarcity,theonlyyearsinwhichitcanbeveryprofitable,renderspeopleofcharacterandfortuneaversetoenterintoit。Itisabandonedtoaninferiorsetofdealers;andmillers,bakers,mealmen,andmealfactors,togetherwithanumberofwretchedhucksters,arealmosttheonlymiddlepeoplethat,inthehomemarket,comebetweenthegrowerandtheconsumer。
TheancientpolicyofEurope,insteadofdiscountenancingthispopularodiumagainstatradesobeneficialtothepublic,seems,onthecontrary,tohaveauthorizedandencouragedit。
Bythe5thand6thofEdwardVI,c。14,itwasenactedthatwhoevershouldbuyanycornorgrainwithintenttosellitagain,shouldbereputedanunlawfulengrosser,andshould,forthefirstfault,suffertwomonths’imprisonment,andforfeitthevalueofthecorn;forthesecond,suffersixmonths’
imprisonment,andforfeitdoublethevalue;andforthethird,besetinthepillory,sufferimprisonmentduringtheking’spleasure,andforfeitallhisgoodsandchattels。TheancientpolicyofmostotherpartsofEuropewasnobetterthanthatofEngland。
Ourancestorsseemtohaveimaginedthatthepeoplewouldbuytheircorncheaperofthefarmerthanofthecornmerchant,who,theywereafraid,wouldrequire,overandabovethepricewhichhepaidtothefarmer,anexorbitantprofittohimself。
Theyendeavoured,therefore,toannihilatehistradealtogether。
Theyevenendeavouredtohinderasmuchaspossibleanymiddlemanofanykindfromcominginbetweenthegrowerandtheconsumer;andthiswasthemeaningofthemanyrestraintswhichtheyimposeduponthetradeofthosewhomtheycalledkiddersorcarriersofcorn,atradewhichnobodywasallowedtoexercisewithoutalicenceascertaininghisqualificationsasamanofprobityandfairdealing。Theauthorityofthreejusticesofthepeacewas,bythestatuteofEdwardVI,necessaryinordertograntthislicence。Buteventhisrestraintwasafterwardsthoughtinsufficient,andbyastatuteofElizabeththeprivilegeofgrantingitwasconfinedtothequarter—sessions。