The Evils of the Corn Trade

The freedom to import, therefore, is a question of contending advantages and disadvantages.

• The most mature deliberation is required in its decision.

In whichever way it is settled, some sacrifices must be submitted to.

Pro Free Trade

Some contend for the unrestrained admission of foreign corn.

They must not imagine that the resulting cheapness will:

• be all good.
• encourage the country’s commerce and population, while it leaves the present state of agriculture and its future increase undisturbed

Instead, they will see a sudden stop to the progress of our cultivation, and even some worsening.

They would make a considerable proportion of our population dependent on foreign grain and its fluctuations just like manufactured goods.

Anti Free Trade

On the other hand, some want to increase import restrictions.

They must realize that our present agriculture can only be maintained by injuring other branches of the national industry.

Those other industries will be injured more than agriculture is benefited.

Keeping up the prices of our corn through artificial regulations will retard and ultimately reduce the progress of our foreign commerce.

After our foreign commerce declines, our agriculture itself would soon suffer, in spite of all our efforts to prevent it.

The current policy of restrictions needs to be changed.

The prices of importation are very much affected by the state of the currency.

Little change will be required in the existing corn laws if the bullion continues of its present value compared with corn, labour, and most other commodities.

• But the bullion price of corn is now very considerably under 63 shillings, the price at which the high duty ceases according to the Act of 1804.

If our currency continues at its present nominal value, it will be necessary to make alterations in the laws.

• Otherwise, they will be a mere dead letter, entirely unable to restrain the importation of foreign corn.

An intermediate sort of alteration will be necessary if we return to our old standard and the value of bullion falls from:

• the restoration of confidence
• the ceasing of an extraordinary demand for bullion

This change will be greater than in the first case, and less than in the second.

In this state of uncertainty with regard to our currency, it would be extremely impolitic to have any final regulation based on an average fro the nominal prices of the last 5 years.

Moreover, the peace in Europe will lead to more corn in Europe.

Such an abundance(3*) took place after the end of the war of Louis 14th.

• The same seems more probable now if the recent devastation were succeeded by a peace of 15-20 years.

The prospect of such an abundance might justify more efforts to prevent foreign corn.

To secure our agriculture from too sudden a shock, it may be necessary to give it some protection.

But if, under such circumstances with regard to the price of corn in Europe, we were to endeavour to retain the prices of the last five years, it is scarcely possible to suppose that our foreign commerce would not in a short time begin to languish.

Our best wheat is 90 shillings a quarter.

The best wheat in France is 32 shillings a quarter.

This difference is almost too great for our capital and machinery to contend with.

British wages have not risen in proportion to the price of corn. But they have been considerably influenced by it.

If the whole of the difference in the expense of raising corn in this country and in the corn countries of Europe was occasioned by taxation, and the precise amount of that taxation as affecting corn, could be clearly ascertained.

To enable us to grow corn in a state of perfect freedom, we need to tax imported corn while granting the same amount in a bounty on exportation.