consumed in it, the supply of the home market can never be very plentiful. But unless the surplus can, in all ordinary cases, be exported, the growers will be careful never to grow more, and the importers never to import more, than what the bare consumption of the home market requires. That market will very seldom be overstocked; but it will generally be understocked; the people, whose business it is to supply it, being generally afraid lest their goods should be left upon their hands. The prohibition of exportation limits the improvement and cultivation of the country to what the supply of its own inhabitants require. The freedom of exportation enables it to extend cultivation for the supply of foreign nations.

was not, even in times of considerable scarcity, allowed to enjoy the whole of that growth. The temporary laws, prohibiting, for a limited time, the exportation of corn, and taking off, for a limited time, the duties upon its importation, expedients to which Great Britain has been obliged so frequently to have recourse, sufficiently demonstrate the impropriety of her general system. Had that system been good, she would not so frequently have been reduced to the necessity of departing from it.

Were all nations to follow the liberal system of free exportation and free importation, the different states into which a great continent was divided, would so far resemble the different provinces of a great empire. among the different provinces of a great em

As

By the 12th of Charles II. c. 4, the exporta-pire, the freedom of the inland trade appears, tion of corn was permitted whenever the price both from reason and experience, not only the of wheat did not exceed 40s. the quarter, and best palliative of a dearth, but the most effecthat of other grain in proportion. By the tual preventive of a famine; so would the 15th of the same prince, this liberty was ex-freedom of the exportation and importation tended till the price of wheat exceeded 48s. the quarter; and by the 22d, to all higher prices. A poundage, indeed, was to be paid to the king upon such exportation; but all grain was rated so low in the book of rates, that this poundage amounted only, upon wheat to 1s. upon oats to 4d. and upon all other grain to 6d. the quarter By the 1st of WilLam and Mary, the act which established this Lounty, this small duty was virtually taken off whenever the price of wheat did not exceed 48s. the quarter; and by the 11th and 12th of William III. c. 20, it was expressly taken off at all higher prices.

The trade of the merchant-exporter was, in this manner, not only encouraged by a bounty, but rendered much more free than that of the inland dealer. By the last of these statutes, corn could be engrossed at any price for exportation; but it could not be engrossed for inland sale, except when the price did not exceed 48s. the quarter. The interest of the inland dealer, however, it has already been shown, can never be opposite to that of the great body of the people. That of the merchant-exporter may, and in fact sometimes is. If, while his own country labours under a dearth, a neighbouring country should be afflicted with a famine, it might be his interest to carry corn to the latter country, in such quantities as might very much aggravate the calamities of the dearth. The plentiful supply of the home market was not the direct object of those statutes; but, under the pretence of encouraging agriculture, to raise the money price of corn as high as possible, and thereby to occasion, as much as possible, a constant dearth in the home market. By the discouragement of importation, the supply of that market, even in times of great scarcity, was confined to the home growth; and by the encouragement of exportation, when the price was so high as 48s. the quarter, that market

trade be among the different states into which a great continent was divided. The larger the continent, the easier the communication through all the different parts of it, both by land and by water, the less would any one parti. cular part of it ever be exposed to either of these calamities, the scarcity of any one country being more likely to be relieved by the plenty of some other. But very few countries have entirely adopted this liberal system. The freedom of the corn trade is almost everywhere more or less restrained, and in many countries is confined by such absurd regulations, as frequently aggravate the unavoidable misfortune of a dearth into the dreadfu! ca lamity of a famine. The demand of such countries for corn may frequently become so great and so urgent, that a small state in their neighbourhood, which happened at the same time to be labouring under some degree of dearth, could not venture to supply them without exposing itself to the like dreadful calamity. The very bad policy of one country may thus render it, in some measure, dangerous and imprudent to establish what would otherwise be the best policy in another. The unlimited freedom of exportation, however, would be much less dangerous in great states, in which the growth being much greater, the supply could seldom be much affected by any quantity of corn that was likely to be exported. In a Swiss canton, or in some of the little states in Italy, it may, perhaps, sometimes be necessary to restrain the exportation of corn. In such great countries as France or England, it scarce ever can. To hinder, besides, the farmer from sending his goods at all times to the best market, is evidently to sacrifice the ordinary laws of justice to an idea of publie utility, to a sort of reasons of state; an act of legislative authority which ought to be exercised only, which can be pardoned only, in cases of the most urgent necessity. The price

at which exportation of corn Is prohibited, if it is ever to be prohibited, ought always to be a very high price.

of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions, with which the folly of human laws too often encumbers its operations: though the effect of those obstructions is always, more or less, either to encroach upon its freedom, or to diminish its security. In Great Britain industry is perfectly secure; and though it is far from being perfectly free, it is as free or freer than in any other part of Europe.

The laws concerning corn may everywhere be compared to the laws concerning religion. The people feel themselves so much interested in what relates either to their subsistence in this life, or to their happiness in a life to come, that government must yield to their prejudices, and, in order to preserve the public tranquillity, establish that system which they approve of. It is upon this account, perhaps, that we so seldom find a reasonable system es-rity and improvement of Great Britain has tablished with regard to either of those two ca- been posterior to that system of laws which is pital objects. connected with the bounty, we must not upon that account, impute it to those laws. It has been posterior likewise to the national debt; but the national debt has most assuredly not been the cause of it.

Though the period of the greatest prospe

IV. The trade of the merchant-carrier, or of the importer of foreign corn, in order to export it again, contributes to the plentiful supply of the home market. It is not, indeed, the direct purpose of his trade to sell his corn Though the system of laws which is conthere; but he will generally be willing to do nected with the bounty, has exactly the same so, and even for a good deal less money than tendency with the practice of Spain and Porhe might expect in a foreign market; because tugal, to lower somewhat the value of the he saves in this manner the expense of load-precious metals in the country where it takes ing and unloading, of freight and insurance. place; yet Great Britain is certainly one of The inhabitants of the country which, by the richest countries in Europe, while Spain means of the carrying trade, becomes the ma- and Portugal are perhaps amongst the most gazine and storehouse for the supply of other beggarly. This difference of situation, howcountries, can very seldom be in want them-ever, may easily be accounted for from two selves. Though the carrying trade must thus different causes. First, the tax in Spain, the contribute to reduce the average money price prohibition in Portugal of exporting gold and of corn in the home market, it would not silver, and the vigilant police which watches thereby lower its real value; it would only over the execution of those laws, must, in two raise somewhat the real value of silver. very poor countries, which between them import annually upwards of six millions sterling, operate not only more directly, but much more forcibly, in reducing the value of those metals there, than the corn laws can do in Great Britain. And, secondly, this bad policy is not in those countries counterbalanced by the general liberty and security of the people. Industry is there neither free nor secure; and the civil and ecclesiastical governments of both Spain and Portugal are such as would alone be sufficient to perpetuate their present state of poverty, even though their regulations of commerce were as wise as the greatest part of thein are absurd and foolish.

The carrying trade was in effect prohibited in Great Britain, upon all ordinary occasions, by the high duties upon the importation of foreign corn, of the greater part of which there was no drawback; and upon extraordinary occasions, when a scarcity made it necessary to suspend those duties by temporary statutes, exportation was always prohibited. By this system of laws, therefore, the carrying trade was in effect prohibited.

The 13th of the present king, c. 43, seems to have established a new system with regard to the corn laws, in many respects better than the ancient one, but in one or two respects perhaps not quite so good.

That system of laws, therefore, which is connected with the establishment of the bounty, seems to deserve no part of the praise which has been bestowed upon it. The improvement and prosperity of Great Britain, which has been so often ascribed to those laws, may very easily be accounted for by other causes. That security which the laws in Great Britain give to every man, that he shall enjoy the fruits of his own labour, is alone sufficient to make any country flourish, By this statute, the high duties upon imnotwithstanding these and twenty other ab-portation for home consumption are taken off, surd regulations of commerce; and this secu- so soon as the price of middling wheat rises rity was perfected by the Revolution, much to 48s. the quarter; that of middling rye, about the same time that the bounty was es- pease, or beans, to 32s.; that of barley to tablished. The natural effort of every indi-24s. ; and that of oats to 16s.; and instead of vidual to better his own condition, when suf- them, a small duty is imposed of only 6d. fered to exert itself with freedom and secu-upon the quarter of wheat, and upon that of rity, is so powerful a principle, that it is alone, other grain in proportion. With regard to and without any assistance, not only capable all those different sorts of grain, but particu

So far this law seems evidently an improve-vantageous to those of the favouring country. ment upon the ancient system.

By this treaty, the crown of Portugal becomes bound to admit the English woollens upon the same footing as before the prohibi- It is but a very small part of this importation; that is, not to raise the duties which tion which, it can be supposed, is employed had been paid before that time. But it does as an annual addition, either to the plate or not become bound to admit them upon any to the coin of the kingdom. The rest must better terms than those of any other nation, all be sent abroad, and exchanged for con

sumable goods of some kind or other. But more that most insignificant object of modern if those consumable goods were purchased di- policy, the balance of trade, appears to be in rectly with the produce of English industry, our favour with some particular countries, the it would be more for the advantage of Eng- more it must necessarily appear to be against land, than first to purchase with that produce us with many others. the gold of Portugal, and afterwards to pur- It was upon this silly notion, however, that chase with that gold those consumable goods. England could not subsist without the PorA direct foreign trade of consumption is al- tugal trade, that, towards the end of the late ways more advantageous than a round-about war, France and Spain, without pretending one; and to bring the same value of foreign either offence or provocation, required the goods to the home market, requires a much king of Portugal to exclude all British ships smaller capital in the one way than in the from his ports, and, for the security of this other. If a smaller share of its industry, exclusion, to receive into them French or Spatherefore, had been employed in producing nish garrisons. Had the king of Portugal goods fit for the Portugal market, and a submitted to those ignominious terms which greater in producing those fit for the other his brother-in-law the king of Spain proposed markets, where those consumable goods for to him, Britain would have been freed from which there is a demand in Great Britain are to be had, it would have been more for the advantage of England. To procure both the gold which it wants for its own use, and the consumable goods, would, in this way, employ a much smaller capital than at present. There would be a spare capital, therefore, to be employed for other purposes, in exciting an additional quantity of industry, and in raising a greater annual produce.

a much greater inconveniency than the loss of the Portugal trade, the burden of supporting a very weak ally, so unprovided of every thing for his own defence, that the whole power of England, had it been directed to that single purpose, could scarce, perhaps, bave defended him for another campaign. The loss of the Portugal trade would, no doubt, have occasioned a considerable embarrassment to the merchants at that time engaged in it, who might not, perhaps, have found out, for a year or two, any other equally advantageous method of employing their capitals; and in this would probably have consisted all the inconveniency which England could have suffered from this notable piece of commercial policy.

Though Britain were entirely excluded from the Portugal trade, it could find very little difficulty in procuring all the annual supplies of gold which it wants, either for the purposes of plate, or of coin, or of foreign trade. Gold, like every other commodi y, is always somewhere or another to be got for its value by those who have that value to give for it. The The great annual importation of gold and annual surplus of gold in Portugal, besides, silver is neither for the purpose of plate nor of would still be sent abroad, and though not coin, but of foreign trade. A round-about carried away by Great Britain, would be car-foreign trade of consumption can be carried ried away by some other nation, which would on more advantageously by means of these be glad to sell it again for its price, in the same manner as Great Britain does at present. In buying gold of Portugal, indeed, we buy it at the first hand; whereas, in buying it of any other nation, except Spain, we should buy it at the second, and might pay somewhat dearer. This difference, however, would surely be too insignificant to deserve the public at

tention.

Almost all our gold, it is said, comes from Portugal. With other nations, the balance of trade is either against us, or not much in our favour. But we should remember, that the more gold we import from one country, the less we must necessarily import from all others. The effectual demand for gold, like that for every other commodity, is in every country limited to a certain quantity. If nine-tenths of this quantity are imported from one country, there remains a tenth only to be imported from all others. The more gold, besides, that is annually imported from some particular countries, over and above what is requisite for plate and for coin, the more must necessarily be exported to some others: and the

metals than of almost any other goods. As they are the universal instruments of commerce, they are more readily received in return for all commodities than any other goods; and, on account of their small bulk and great value, it costs less to transport them backward and forward from one place to another than almost any other sort of merchandize, and they lose less of their value by being so transported. Of all the commodities, therefore, which are bought in one foreign country, for no other purpose but to be sold or exchanged again for some other goods in another, there are none so convenient as gold and silver. In facilitating all the different round-about foreign trades of consumption which are carried on in Great Britain, consists the principal advantage of the Portugal trade; and though it is not a capital advantage, it is, no doubt, a con. siderable one.

That any annual addition which, it can reasonably be supposed, is made either to the plate or to the coin of the kingdom, could require but a very small annual importation of gold and silver, seems evident enough; and