Books: Importation of Foreign Corn
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Thomas Malthus >> Importation of Foreign Corn
If, upon mature deliberation, we determine to open our ports to the
free admission of foreign grain, we must not be disturbed at the
depressed state, and diminished produce of our home cultivation; we
must not be disturbed at our becoming more and more dependent upon
other nations for the main support of our population; we must not be
disturbed at the greatly increased pressure of the national debt
upon the national industry; and we must not be disturbed at the
fluctuations of price, occasioned by the very variable supplies,
which we shall necessarily receive from France, in the actual state
of her laws, or by the difficulty and expense of procuring large,
and sudden imports from the Baltic, when our wants are pressing.
These consequences may all be distinctly foreseen. Upon all general
principles, they belong to the opening of our ports, in the actual
state and relations of this country to the other countries of
Europe; and though they may be counterbalanced or more than
counterbalanced, by other advantages, they cannot, in the nature of
things, be avoided.
On the other hand, if, on mature deliberation, we determine steadily
to pursue a system of restrictions with regard to the trade in corn,
we must not be disturbed at a progressive rise in the price of
grain; we must not be disturbed at the necessity of altering, at
certain intervals, our restrictive laws according to the state of
the currency, and the value of the precious metals; we must not be
disturbed at the progressive diminution of fixed incomes; and we
must not be disturbed at the occasional loss or diminution of a
continental market for some of our least peculiar manufactures,
owing to the high price of our labour.(17*) All these disadvantages
may be distinctly foreseen. According to all general principles they
strictly belong to the system adopted; and, though they may be
counterbalanced, and more than counterbalanced, by other greater
advantages, they cannot, in the nature of things, be avoided, if we
continue to increase in wealth and population.
Those who promise low prices upon the restrictive system, take an
erroneous view of the causes which determine the prices of raw
produce, and draw an incorrect inference from the experience of the
first half of the last century. As I have stated in another
place,(18*) a nation which very greatly gets the start of its
neighbours in riches, without any peculiar natural facilities for
growing corn, must necessarily submit to one of these
alternatives--either a very high comparative price of grain, or a
very great dependence upon other countries for it.
With regard to the specific mode of regulating the importation of
corn, if the restrictive system be adopted, I am not sufficiently
acquainted with the details of the subject to be able to speak with
confidence. It seems to be generally agreed, that, in the actual
state of things, a price of about eighty shillings a quarter(19*)
would prevent our cultivation from falling back, and perhaps allow
it to be progressive. But, in future, we should endeavour, if
possible, to avoid all discussions about the necessity of protecting
the British farmer, and securing to him a fair living profit. Such
language may perhaps be allowable in a crisis like the present. But
certainly the legislature has nothing to do with securing to any
classes of its subjects a particular rate of profits in their
different trades. This is not the province of a government; and it
is unfortunate that any language should be used which may convey
such an impression, and make people believe that their rulers ought
to listen to the accounts of their gains and losses.
But a government may certainly see sufficient reasons for wishing to
secure an independent supply of grain. This is a definite, and may
be a desirable, object, of the same nature as the Navigation Act;
and it is much to be wished, that this object, and not the interests
of farmers and landlords, should be the ostensible, as well as the
real, end which we have in view, in all our inquiries and
proceedings relating to the trade in corn.
I firmly believe that, in the actual state of Europe, and under the
actual circumstances of our present situation, it is our wisest
policy to grow our own average supply of corn; and, in so doing, I
feel persuaded that the country has ample resources for a great and
continued increase of population, of power, of wealth, and of
happiness.
NOTES:
1. Some of my friends were of different opinions as to the side,
towards which my arguments most inclined. This I consider as a
tolerably fair proof of impartiality.
2. Mercantile losses are always comparatively partial; but the
present losses, occasioned by the unusual combination of low prices,
and scanty produce, must inflict a severe blow upon the whole mass
of cultivators. There never, perhaps, was known a year more
injurious to the interests of agriculture.
3. At the same time, I certainly now very much wish that some
regulation had been adopted last year. It would have saved the
nation a great loss of agricultural capital, which it will take some
time to recover. But it was impossible to foresee such a year as the
present--such a combination, as a very bad harvest, and very low
prices.
4. I have very little doubt that the value of paper in this country
has already risen, norwithstanding the increased issues of the Bank.
These increased issues I attribute chiefly to the great failures
which have taken place among country banks, and the very great
purchases which have been made for the continental markets, and,
under these circumstances, increased issues might take place,
accompanied even by a rise of value. But the currency has not yet
recovered itself. The real exchange, during the last year, must have
been greatly in our favour, although the nominal exchange is
considerably against us. This shews, incontrovertibly, that our
currency is still depreciated, in reference to the bullion
currencies of the continent. A part, however, of this depreciation
may still be owing to the value of bullion in Europe not having yet
fallen to its former level.
5. Calculated at twenty-four livres the pound sterling.
6. It has been supposed by some, that this law cannot, and will not
be executed: but I own I see no grounds for such an opinion. It is
difficult to execute prohibitions against the exportation of corn,
when it is in great plenty, but not when it is scarce. For ten years
before 1757, we had in this country, regularly exported on an
average, above 400,000 quarters of wheat, and in that year there was
at once an excess of importation. With regard to the alleged
impotence of governments in this respect, it appears to me that
facts shew their power rather than their weakness. To be convinced
of this, it is only necessary to look at the diminished importations
from America during the war, and particularly from the Baltic after
Bonaparte's decrees. The imports from France and the Baltic in 1810,
were by special licences, granted for purposes of revenue. Such
licences shewed strength rather than weakness; and might have been
refused, if a greater object than revenue had at that time presented
itself.
7. The average is 16 francs, 21 centimes, the Hectolitre. The
Hectolitre is about 1-20th less than 3 Winchester bushels, which
makes the English quarter come to about 38 shillings.
8. It appears from the evidence, that the corn from the Baltic is
often very heavily taxed, and that this tax is generally raised in
proportion to our necessities. In a scarce year in this country we
could never get any considerable quantity of corn from the Baltic,
without paying an enormous price for it.
9. By the real growing price of corn I mean the real quantity of
labour and capital which has been employed to procure the last
additions which have been made to the national produce. In every
rich and improving country there is a natural and strong tendency to
a constantly increasing price of raw produce, owing to the necessity
of employing, progressively, land of an inferior quality. But this
tendency may be partially counteracted by great improvements in
cultivation, and economy of labour. See this subject treated in An
inquiry into the nature and progress of rent, just published.
10. Sir John Sinclair's Account of the Husbandry of Scotland: and
the General Report of Scotland.
11. "Inquiry into the Nature and Progress of Rent, and the
Principles by which it is regulated."
12. I was not prepared to expect (as I intimated in the
Observations) so sudden a fall in the price of labour as has already
taken place. This fall has been occasioned, not so much by the low
price of corn, as by the sudden stagnation of agricultural work,
occasioned by a more sudden check to cultivation than I foresaw.
13. I am strongly disposed to believe, that it is owning to the
unwillingness of governments to allow the free egress of their corn,
when it is scarce, that nations are practically so little dependent
upon each other for corn, as they are found to be. According to all
general principles they ought to be more dependent. But the great
fluctuations in the price of corn, occasioned by this unwillingness,
tend to throw each country back again upon its internal resources.
This was remarkably the case with us in 1800 and 1801, when the very
high price, which we paid for foreign corn, gave a prodigious
stimulus to our domestic agriculture. A large territorial country,
that imports foreign corn, is exposed not infrequently to the
fluctuations which belong to this kind of variable dependence,
without obtaining the cheapness that ought to accompany a trade in
corn really free.
14. See this subject treated in An Inquiry into the Nature and
Progress of Rents.
15. Inquiry into the Nature and Progress of Rent.
16. It is to this class of persons that I consider myself as chiefly
belonging. Much the greatest part of my income is derived from a
fixed salary and the interest of money in the funds.
17. It often happens that the high prices of a particular country
may diminish the quantity of its exports without diminishing the
value of their amount abroad; in which case its foreign trade is
peculiarly advantageous, as it purchases the same amount of foreign
commodities at a much less expense of labour and capital.
18. Inquiry into the Nature and Progress of Rent.
19. This price seems to be pretty fairly consistent with the idea of
getting rid of that part of our high prices which belongs to
excessive issues of paper, and retaining only that part which
belongs to great wealth, combined with a system of restrictions.