Observations on the Effects of the Corn Laws, and of a Rise or Fall in the Price of Corn on the Agr | Page 8

policy or impolicy of such a system.
While our great commercial prosperity continues, it is scarcely possible
that we should become again an exporting nation with regard to corn.
The bounty has long been a dead letter; and will probably remain so.
We may at present then confine our inquiry to the restrictions upon the
importation of foreign corn with a view to an independent supply.
The determination of the question, respecting the policy or impolicy of
continuing the corn laws, seems to depend upon the three following
points:--
First, Whether, upon the supposition of the most perfect freedom of
importation and exportation, it is probable that Great Britain and
Ireland would grow an independent supply of corn.
Secondly, Whether an independent supply, if it do not come naturally,

is an object really desirable, and one which justifies the interference of
the legislature.
And, Thirdly, If an independent supply be considered as such an object,
how far, and by what sacrifices, are restrictions upon importation
adapted to attain the end in view.
Of the first point, it may be observed, that it cannot, in the nature of
things, be determined by general principles, but must depend upon the
size, soil, facilities of culture, and demand for corn in the country in
question. We know that it answers to almost all small well-peopled
states, to import their corn; and there is every reason to suppose, that
even a large landed nation, abounding in a manufacturing population,
and having cultivated all its good soil, might find it cheaper to purchase
a considerable part of its corn in other countries, where the supply,
compared with the demand, was more abundant. If the intercourse
between the different parts of Europe were perfectly easy and perfectly
free, it would be by no means natural that one country should be
employing a great capital in the cultivation of poor lands, while at no
great distance, lands comparatively rich were lying very ill cultivated,
from the want of an effectual demand. The progress of agricultural
improvement ought naturally to proceed more equably. It is true indeed
that the accumulation of capital, skill, and population in particular
districts, might give some facilities of culture not possessed by poorer
nations; but such facilities could not be expected to make up for great
differences in the quality of the soil and the expenses of cultivation.
And it is impossible to conceive that under very great inequalities in the
demand for corn in different countries, occasioned by a very great
difference in the accumulation of mercantile and manufacturing capital
and in the number of large towns, an equalization of price could take
place, without the transfer of a part of the general supply of Europe,
from places where the demand was comparatively deficient, to those
where it was comparatively excessive.
According to Oddy's European commerce, the Poles can afford to bring
their corn to Danzig at thirty two shillings a quarter. The Baltic
merchants are said to be of opinion that the price is not very different at

present; and there can be little doubt, that if the corn growers in the
neighbourhood of the Baltic could look forward to a permanently open
market in the British ports, they would raise corn expressly for the
purpose. The same observation is applicable to America; and under
such circumstances it would answer to both countries, for many years
to come, to afford us supplies of corn, in much larger quantities than
we have ever yet received from them.
During the five years from 1804 to 1808, both inclusive, the bullion
price of corn was about seventy five shillings per quarter; yet, at this
price, it answered to us better to import some portion of our supplies
than to bring our land into such a state of cultivation as to grow our
own consumption. We have already shown how slowly and partially
the price of corn affects the price of labour and some of the other
expenses of cultivation. Is it credible then that if by the freedom of
importation the prices of corn were equalized, and reduced to about
forty five or fifty shillings a quarter, it could answer to us to go on
improving our agriculture with our increasing population, or even to
maintain our produce in its actual state?
It is a great mistake to suppose that the effects of a fall in the price of
corn on cultivation may be fully compensated by a diminution of rents.
Rich land which yields a large net rent, may indeed be kept up in its
actual state, notwithstanding a fall in the price of its produce: as a
diminution of rent may be made entirely to compensate this fall and all
the additional expenses that belong to a rich and highly taxed country.
But in