main ftationary, but must fluctuate as the price of mo ney changes, and other particulars that are conftantly vibrating, as the circumftances of the country vary.

Without therefore attempting to afcertain this difputable point, let us for the prefent affume a point hypothetically like the Algebraift, to serve as a medium for our reasoning, in hope that the refult of the operation may be to discover at last the unknown quantity fought.

In this way, let it in the mean time be fupposed, merely for the fake of illustration, that 44 s. per quarter is the medium price of wheat; and that as the price recedes from that point, and either rifes above, or finks below it, the price may be denominated high or low.

Suppofing that point to be thus ascertained, the object to be next aimed at in a corn law, will be to prevent as much as poffible any deviation from that medium price.

With that view, it would feem wife and prudent, that exportation of wheat should be prevented, whenever the price rose above that medium rate, and when it rose a very little above that medium rate, the importation of foreign grain ought to be permitted, either without any duty at all, or under a very small duty.

When, on the other hand, it fell below that medium price, the exportation of grain ought to be freely permitted, and the importation of foreign grain in these circumstances be prohibited.

But it would feem that the fimply permitting the ex'portation of grain, while the price was only a little below the medium rate, is all that juftice or found policy can require. To offer a high bounty in this cafe, feems to be impolitic and pernicious, as it holds forth a temptation to export confiderable quantities when the country is in a fituation that cannot fpare it; fo that in a short time, the price may have been fo raised in confequence of that exportation, as to make it ne

ceffary to bring it back again to fupply our own market. In this cafe, the offering a high bounty is not only the caufe of an unneceffary expenditure of public money, but what is worfe, it is the caufe of an unneceffary fluctuation in the price of grain, which is always pernicious †, and which is the very object that ought to be guarded againft by a corn law."

It has fo happened, however, that in all the cornlaws that have hitherto been enacted for great Britain, this faulty regulation has been invariably adopted. In every cafe, the language of the law has been, if the price be at or above fuch a stated fum per quarter, you

As it is impoffible to make a cafe of this nature too clear, I fhall throw into the form of notes fome cafes for illuftrating the propofitions in the text by examples, to which the reader either may or may not have recourse, as he finds fuit his inclination. If the text appears quite clear to him, he may go on; if it appears obfcure, he may caft his eye upon the notes below, which will, it is hoped, afford the explanations he wants.

Let us for the fake of illuftration fuppofe, that the average price of wheat, taken in the manner above ftated, had been found to be 44 s. per quarter; it might be faid to be high when it went above that, and low when it fell below it.

According to our principles, no exportation fhould be at all permitted after the price exceeded 44 s. in the smallest degree; If it rofe a little higher, fuppofe to 44 s. 6 d. permiffion should be given to import foreign

corn.

If, on the other hand, the price fell below 44 s. ever fo little, permiffion fhould be given to export grain; but no bounty fhould be granted until the price fell fomewhat, fay at least 6 d.; fo that no bounty fhould be allowed on exportation, unlefs the price was at or under 43 s. 6 d.

Even when it falls to 43 s. 6 d. at which rate it is propofed that a bounty may be granted, it would be improper to grant fo high a bounty as 5 s. per quarter; becaufe, on the fuppofition that a foreign market can be found, where the price is equal to the home market, fuch great quantities would be exported in confequence of that bounty, as to raife the price in the home market, till it came to a par with the foreign market, that is to fay, in this cafe, 48 s. 6 d. which is 4 s. 6d. above the medium price, before the exportation can ceafe; and no one can fay how much higher it might rife. Whereas, had this bounty been either difcontinued or moderated, the exportation muft foon have ceafed, and plenty a home, without fuperfluity, must have been the confequence.

hall not be allowed to export one fingle bufhel of corn on any account whatever; but if it fhall fall ever fo little below that specific price, were it but one penny a quarter, you are not only permitted to export corn, but you are authorised to draw the highest bounty upon the corn fo exported, that the law in any cafe allows. This is a pernicious error, that loudly calls for correction ;and this is one of the cafes that Dr. Adam Smith, with great juftice, feverely animadverts upon. It furnishes the means of enriching a few individuals, at an expence to the state, that can admit of no due degree of estimation.

No attempt has ever yet been made to correct this great error-though nothing, I think, can be more fimple or obvious than the principle on which a reform in this refpect fhould be attempted.

The price of corn in any market can only be influenced by two circumftances, acting either together or feparately. First, By the home fupply being greater or lefs than is fufficient to anfwer the effective demand for it in the market at the time;-or fecond, Where a free importation or exportation is permitted, by the price of grain in foreign acceffible markets being very high or very low at the time. It is neceffary to advert to these circumstances separately, before we can form just notions on this fubject,

If the quantity of grain at home be more abundant than is fufficient to fupply our own internal consumption, the price, if no exportation be permitted, will fall below the average rate;-after which time, if an exportation be permitted, one of the two following confequences muft enfue.

Firft. If the price of that kind of grain, in any acceffible markets, fhould be at that time fo much higher than at home, as to exceed the rate of freight, commiffion, and expences, an abundant exportation would then take

place, fo as not only to prevent the price of grain from falling lower, but even, in a fhort while, to make it rife in the home market above the average rate: Or

Second. If the price in foreign acceffible markets was fo low as not to afford the freight and other charges, no exportation could take place +. The corn muft, there†. fore, remain on hand unfold, until it fhall fall to fuch a low rate, as to be the whole amount of freight and expences below the foreign market, whatever that may be, before one ounce can be exported."

From this example, it appears very obvious, that if no bounty were, in any cafe, allowed, the price of grain in our own markets, would, in many cafes, be influenc ed, not fo much by the abundance of our own crops, as by the rate of other markets; and fuch great rifes or depreffions of price might be occafionally experienced, as to distress the labouring people, and to derange the operations of the farmer, in fuch a degree, as to prove highly deftructive to the ftate. It is, therefore, an object well deferving the attention of the legislature, to guard against thefe evils.

To do this effectually, it becomes neceffary to enquire what are the circumftances that render it expedi

† For example, fuppofe the price at home to be 43 s. and that the freignt and other expences in carrying it to a foreign market amounted to 2 s. 6 d. per quarter, fhould the price at that market, at the time, be 46 s. 6 d. or upwards, there would be a clear profit of 6 d. or more on every quarter; fo that exportation in this cafe might go brifkly on without any bounty whatever.

But if the price in the foreign market, inflead of 46 s. food only at 45 s. no exportation could take place, till the price fell lower in the home market; for 2 s. 6 d. the expence of freight &c, added to 43 s. the price at home comes to 45 s. 6 d. prime coft, which is 6 d. above the selling price abroad. No exportation, therefore, in thefe circumftances could take place.

Again, ifthe price in the foreign market, instead of 45 s. were no higher than 42 s.; by the fame mode of reafoning it will appear, that no exportation could take place without a bounty, till the price at home fell to 39 s. 6 d. ; or if the price abroad was 40 s. our prices must fall to 37 s. 6 d. and fo on at lower prices: the price at home must conftantly fink to more than 2 s. 6 d. below the foreign price whatever that may be, before any exportation could take place.

ent to have recourfe to a bounty at all, and in what cafes it can be dispensed with.

The price of corn in any country is not an arbitrary thing that can be raised or lowered at pleasure. It is the produce of labour and industry; nor can it be reared, unless the price of that commodity fhall be fufficient to indemnify the farmer for his labour.-The prime coft must be repaid by the price of the grain, otherwise the profecution of that business must be abandoned.

But the prime coft of rearing this commodity, may be greater in one country, than in another, or in one part of a country, than in another part of it; and of courfe, the average price at which it can be fold, may be higher in one place than in another.

Were the average price of grain nearly the fame in all contiguous countries, and were no restraints ever to be put upon the fale of this commodity between one country and another, and were not the expence of transporting it confiderable, perhaps nothing more would be required, than to grant an unlimited freedom to this

trade.

But as corn is an indifpenfible neceffary of life; as restraints are, or may be impofed arbitrarily by foreign powers upon this trade; as war might interrupt its course, and as the fmalleft want of a fupply in time would produce the most grievous diftrefs to the ftate, it behoves every people to try, if poffible, to supply themselves with this neceffary article at home, and of courfe, to pay for it the price it can be afforded for among themselves.

Wherever, therefore, grain can be reared at a lower price than among other nations around, nothing more is neceffary to insure an universal plenty, than to free the trade in this article from unneceffary restraints; as in that cafe, by a judicious management, it seems to be easy to carry on a trade in grain, without having