times of poverty and depresssion, so gold and silver are not likely to be worse paid for.

The

land than in England, because the real recompence of labour is much lower: Scotland, The price of gold and silver, when the ac- though advancing to greater wealth, advancidental discovery of more abundant mines ces much more slowly than England. does not keep it down, as it naturally rises frequency of emigration from Scotland, and with the wealth of every country; so, what- the rarity of it from England, sufficiently ever be the state of the mines, it is at all times prove that the demand for labour is very difnaturally higher in a rich than in a poor coun- ferent in the two countries. The proportion try. Gold and silver, like all other commo- between the real recompence of labour in difdities, naturally seek the market where the ferent countries, it must be remembered, is best price is given for them, and the best price naturally regulated, not by their actual wealth is commonly given for every thing in the or poverty, but by their advancing, stationary, country which can best afford it. Labour, it or declining condition. must be remembered, is the ultimate price Gold and silver, as they are naturally of the which is paid for every thing; and in coun- greatest value among the richest, so they are tries where labour is equally well rewarded, naturally of the least value among the poorest the money price of labour will be in propor- nations. Among savages, the poorest of all tion to that of the subsistence of the labourer. nations, they are scarce of any value. But gold and silver will naturally exchange for a greater quantity of subsistence in a rich than in a poor country; in a country which abounds with subsistence, than in one which is but indifferently supplied with it. If the two countries are at a great distance, the difference may be very great; because, though the metals naturally fly from the worse to the better market, yet it may be difficult to transport them in such quantities as to bring their price nearly to a level in both. If the countries are near, the difference will be smaller, and may sometimes be scarce perceptible; because in this case the transportation will be easy.

In great towns, corn is always dearer than in remote parts of the country. This, however, is the effect, not of the real cheapness of silver, but of the real dearness of corn. It does not cost less labour to bring silver to the great town than to the remote parts of the country; but it costs a great deal more to bring corn.

In some very rich and commercial countries, such as Holland and the territory of Genoa, corn is dear for the same reason that it is dear in great towns. They do not produce enough to maintain their inhabitants. They are rich in the industry and skill of their China is a much richer country than artificers and manufacturers, in every sort of any part of Europe, and the difference be- machinery which can facilitate and abridge tween the price of subsistence in China and in labour; in shipping, and in all the other inEurope is very great. Rice in China is much struments and means of carriage and comcheaper than wheat is anywhere in Europe. merce: but they are poor in corn, which, as England is a much richer country than Scot- it must be brought to them from distant counland, but the difference between the money tries, must, by an addition to its price, pay price of corn in those two countries is much for the carriage from those countries. It does smaller, and is but just perceptible. In pro- not cost less labour to bring silver to Amsterportion to the quantity or measure, Scotch dam than to Dantzic; but it costs a great deal corn generally appears to be a good deal cheap-more to bring corn. The real cost of silver. er than English; but, in proportion to its qua- must be nearly the same in both places; but lity, it is certainly somewhat dearer. Scot- that of corn must be very different. Diminish land receives almost every year very large sup- the real opulence either of Holland or of the plies from England, and every commodity territory of Genoa, while the number of their must commonly be somewhat dearer in the inhabitants remains the same; diminish their country to which it is brought than in that power of supplying themselves from distant from which it comes. English corn, there- countries; and the price of corn, instead of fore, must be dearer in Scotland than in Eng- sinking with that diminution in the quantity land; and yet in proportion to its quality, or of their silver, which must necessarily accomto the quantity and goodness of the flour or pany this declension, either as its cause or as meal which can be made from it, it cannot its effect, will rise to the price of a famine. commonly be sold higher there than the Scotch corn which comes to market in competition with it.

When we are in want of necessaries, we must part with all superfluities, of which the value, as it rises in times of opulence and prosperity, The difference between the money price of so it sinks in times of poverty and distress. labour in China and in Europe, is still great- It is otherwise with necessaries. Their real er than that between the money price of sub- price, the quantity of labour which they can sistence; because the real recompence of la- purchase or command, rises in times of pobour is higher in Europe than in China, the verty and distress, and sinks in times of opugreater part of Europe being in an improving lence and prosperity, which are always times state, while China seems to be standing still. of great abundance; for they could not otherThe money price of labour is lower in S ot-wise be times of opulence and prosperity

Corn is a necessary, silver is only a super- | And from this sum, neglecting likewise the fluity.

Whatever, therefore, may have been the increase in the quantity of the precious metals, which, during the period between the middle of the fourteenth and that of the sixteenth century, arose from the increase of wealth and improvement, it could have no tendencyto diminish their value, either in Great Britain, or in any other part of Europe. If those who have collected the prices of things in ancient times, therefore, had, during this period, no reason to infer the diminution of the value of silver from any observations which they had made upon the prices either of corn, or of other commodities, they had still less reason to infer it from any supposed increase of wealth and improvement.

Second Period.-But how various soever may have been the opinions of the learned concerning the progress of the value of silver during the first period, they are unanimous concerning it during the second.

From about 1570 to about 1640, during a period of about seventy years, the variation in the proportion between the value of silver and that of corn held a quite opposite course. Silver sunk in its real value, or would exchange for a smaller quantity of labour than before; and corn rose in its nominal price, and, instead of being commonly sold for about two ounces of silver the quarter, or about ten shillings of our present money, came to be sold for six and eight ounces of silver the quarter, or about thirty and forty shillings of our present money.

fraction, and deducting a ninth, or 4s. 1d., for the difference between the price of the best wheat and that of the middle wheat, the price of the middle wheat comes out to have been about L.1: 12: 88, or about six ounces and one-third of an ounce of silver.

From 1621 to 1636, both inclusive, the average price of the same measure of the best wheat, at the same market, appears, from the same accounts, to have been L.2: 10s.; from which, making the like deductions as in the foregoing case, the average price of the quarter of eight bushels of middle wheat comes out to have been L. 1: 19: 6, or about seven ounces and two-thirds of an ounce of silver.

Third Period.-Between 1630 and 1640, or about 1636, the effect of the discovery of the mines of America, in reducing the value of silver, appears to have been completed, and the value of that metal secms never to have sunk lower in proportion to that of corn than it was about that time. It seems to have risen somewhat in the course of the present century, and it had probably begun to do so, even some time before the end of the last.

From 1637 to 1700, both inclusive, being the sixty-four last years of the last century, the average price of the quarter of nine bushels of the best wheat, at Windsor market, appears, from the same accounts, to have been L.2: 11: 0; which is only 1s. Od. dearer than it had been during the sixteen years before. But, in the course of these sixty-four years, there happened two events, which must have produced a much greater scarcity of corn than what the course of the seasons would otherwise have occasioned, and which, therefore, without supposing any further reduction in the value of silver, will much more than account for this very small enhancement of price.

The discovery of the abundant mines of America seems to have been the sole cause of this diminution in the value of silver, in proportion to that of corn. It is accounted for, accordingly, in the same manner by every body; and there never has been any dispute, either about the fact, or about the cause of it. The greater part of Europe was, during this The first of these events was the civil war, period, advancing in industry and improve- which, by discouraging tillage and interruptment, and the demand for silver must conse-ing commerce, must have raised the price of quently have been increasing; but the increase of the supply had, it seems, so far exceeded that of the demand, that the value of that metal sunk considerably. The discovery of the mines of America, it is to be observed, does not seem to have had any very sensible effect upon the prices of things in England till after 1570; though even the mines of Potosi had been discovered more than twenty years before.

From 1595 to 1620, both inclusive, the average price of the quarter of nine bushels of the best wheat, at Windsor market, appears, from the accounts of Eton college, to have been L.2:16. From which sum, neglecting the fraction, and deducting a ninth, or 4s. 74d., the price of the quarter of eight bushels comes out to have been L. 1: 16: 103.

corn much above what the course of the seasons would otherwise have occasioned. It must have had this effect, more or less, at all the different markets in the kingdom, but particularly at those in the neighbourhood of London, which require to be supplied from the greatest distance. In 1648, accordingly, the price of the best wheat, at Windsor market, appears, from the same accounts, to have been L.4: 5s., and, in 1649, to have been L.4, the quarter of nine bushels. The excess of those two years above L.2 10s. (the average price of the sixteen years preceding 1.637) is L.3 5s., which, divided among the sixtyfour last years of the last century, will alone very nearly account for that small enhancement of price which seems to have taken place in them. These, however, though the highest,

F

wars.

The second event was the bounty upon the exportation of corn, granted in 1688. The bounty, it has been thought by many people, by encouraging tillage, may, in a long course of years, have occasioned a greater abundance, and, consequently, a greater cheapness of corn in the home market, than what would otnerwise have taken place there. How far the bounty could produce this effect at any time I shall examine hereafter: I shall only observe at present, that between 1688 and 1700, it had not time to produce any such effect. During this short period, its only effect must have been, by encouraging the exportation of the surplus produce of every year, and thereby hindering the abundance of one year from compensating the scarcity of another, to raise the price in the home market. The scarcity which prevailed in England, from 1693 to 1699, both inclusive, though no doubt principally owing to the badness of the seasons, and, therefore, extending through a considerable part of Europe, must have been somewhat enhanced by the bounty. In 1699, accordingly, the further exportation of corn was prohibited for nine months.

are by no means the only high prices which | the late recoinage of the gold, the price of sil seem to have been occasioned by the civil ver bullion was seldom higher than five shillings and sevenpence an ounce, which is but fivepence above the mint price. But in 1695, the common price of silver bullion was six shil lings and fivepence an ounce, which is fifteen pence above the mint price. Even before the late recoinage of the gold, therefore, the coin, gold and silver together, when compared with silver bullion, was not supposed to be mor than eight per cent. below its standard value In 1695, on the contrary, had been supposed to be near five-and-twenty per cent. below that value. But in the beginning of the present century, that is, immediately after the great recoinage in King William's time, the greater part of the current silver coin must have been still nearer to its standard weight than it is at present. In the course of the present century, too, there has been no great public calamity, such as a civil war, which could either discourage tillage, or interrupt the interior commerce of the country. And though the bounty which has taken place through the greater part of this century, must always raise the price of corn somewhat higher than it otherwise would be in the actual state of tillage; yet, as in the course of this century, the bounty has had full time to produce all the good effects commonly imputed to it to encourage tillage, and thereby to increase the quantity of corn in the home market, it may, upon the principles of a system which I shall explain and examine hereafter, be supposed to have done something to lower the price of that commodity the one way, as well as to raise it the other. It is by many people supposed to have done more. In the sixty-four years of the present century, accordingly, the average price of the quarter of nine bushels of the best wheat, at Windsor market, appears, by the accounts of Eton col lege, to have been L.2: 0: 61, which is about ten shillings and sixpence, or more than five-and-twenty per cent. cheaper than it had been during the sixty-four last years of the last century; and about nine shillings and sixpence cheaper than it had been during the sixteen years preceding 1636, when the discovery of the abundant mines of America may

There was a third event which occurred in the course of the same period, and which, though it could not occasion any scarcity of corn, nor, perhaps, any augmentation in the real quantity of silver which was usually paid for it, must necessarily have occasioned some augmentation in the nominal sum. This event was the great debasement of the silver coin, by clipping and wearing. This evil had begun in the reign of Charles II. and had gone on continually increasing till 1695; at which time, as we may learn from Mr Lowndes, the current silver coin was, at an average, near five-and-twenty per cent. below its standard value. But the nominal sum which constitutes the market price of every commodity is necessarily regulated, not so much by the quantity of silver, which, according to the standard, ought to be contained in it, as by that which, it is found by experience, actually is contained in it. This nominal sum, there-be supposed to have produced its full effect; fore, is necessarily higher when the coin is much debased by clipping and wearing, than when near to its standard value.

In the course of the present century, the silver coin has not at any time been more below its standard weight than it is at present. But though very much defaced, its value has been kept up by that of the gold coin, for which it is exchanged. For though, before the late recoinage, the gold coin was a good deal defaced too, it was less so than the silver. In 1695, on the contrary, the value of the silver coin was not kept up by the gold coin; a guinea then commonly exchanging for thirty shillings of the worn and clipt silver. Before

and about one shilling cheaper than it had been in the twenty-six years preceding 1620, before that discovery can well be supposed to have produced its full effect. According to this account, the average price of middle wheat, during these sixty-four first years of the present century, comes out to have been about thirty-two shillings the quarter of eight bushels.

The value of silver, therefore, seems to have risen somewhat in proportion to that of corn during the course of the present century, and it had probably begun to do so even some time before the end of the last.

* Lowndes's Essay on the Silver Coin, 68.

In 1687, the price of the quarter of nine in the most plentiful years, was the avowed bushels of the best wheat, at Windsor market, end of the institution. was L. 1:5:2, the lowest price at which it had ever been from 1595.

In years of great scarcity, indeed, the bounty has generally been suspended. It must, however, have had some effect upon the prices of many of those years. By the extraordinary exportation which it occasions in years of plenty, it must frequently hinder the plenty of one year from compensating the scarcity of another.

In 1688, Mr Gregory King, a man famous for his knowledge in matters of this kind, estimated the average price of wheat, in years of moderate plenty, to be to the grower 3s. 6d. the bushel, or eight-and-twenty shillings the quarter. The grower's price I understand to be the same with what is sometimes Both in years of plenty and in years of called the contract price, or the price at which scarcity, therefore, the bounty raises the price a farmer contracts for a certain number of of corn above what it naturally would be in years to deliver a certain quantity of corn to a the actual state of tillage. If during the dealer. As a contract of this kind saves the far-sixty-four first years of the present century, mer the expense and trouble of marketing, the therefore, the average price has been lower contract price is generally lower than what is than during the sixty-four last years of the supposed to be the average market price. Mr last century, it must, in the same state of tillKing had judged eight-and-twenty shillings age, have been much more so, had it not been the quarter to be at that time the ordinary for this operation of the bounty. contract price in years of moderate plenty. But, without the bounty, it may be said the Before the scarcity occasioned by the late ex-state of tillage would not have been the same. traordinary course of bad seasons, it was, I have been assured, the ordinary contract price in all common years.

What may have been the effects of this institution upon the agriculture of the country, I shall endeavour to explain hereafter, when I In 1688 was granted the parliamentary come to treat particularly of bounties. I shall bounty upon the exportation of corn. The only observe at present, that this rise in the country gentlemen, who then composed a still value of silver, in proportion to that of corn, greater proportion of the legislature than they has not been peculiar to England. It has been do at present, had felt that the money price observed to have taken place in France during of corn was falling. The bounty was an ex- the same period, and nearly in the same propedient to raise it artificially to the high price portion, too, by three very faithful, diligent, at which it had frequently been sold in the and laborious collectors of the prices of corn, times of Charles I. and II. It was to take Mr Dupré de St Maur, Mr Messance, and the place, therefore, till wheat was so high as forty-author of the Essay on the Police of Grain. eight shillings the quarter; that is, twenty | But in France, till 1764, the exportation of shillings, or 5-7ths dearer than Mr King had, grain was by law prohibited; and it is somein that very year, estimated the grower's price what difficult to suppose, that nearly the same to be in times of moderate plenty. If his cal- diminution of price which took place in one culations deserve any part of the reputation country, notwithstanding this prohibition. which they have obtained very universally, should, in another, be owing to the extraoreight-and-forty shillings the quarter was a dinary encouragement given to exportation. price which, without some such expedient as It would be more proper, perhaps, to conthe bounty, could not at that time be expect-sider this variation in the average money price ed, except in years of extraordinary scarcity. of corn as the effect rather of some gradual But the government of King William was not rise in the real value of silver in the European then fully settled. It was in no condition to market, than of any fall in the real average refuse any thing to the country gentlemen, value of corn. Corn, it has already been obfrom whom it was, at that very time, solicit-served, is, at distant periods of time, a more ing the first establishment of the annual land- accurate measure of value than either silver or, perhaps, any other commodity. When,

tax.

The value of silver, therefore, in proportion after the discovery of the abundant mines of to that of corn, had probably risen somewhat America, corn rose to three and four times before the end of the last century; and it its former money price, this change was uniseems to have continued to do so during the versally ascribed, not to any rise in the real course of the greater part of the present, value of corn, but to a fall in the real value though the necessary operation of the bounty must have hindered that rise from being so sensible as it otherwise would have been in the actual state of tillage.

of silver. If, during the sixty-four first years of the present century, therefore, the average money price of corn has fallen somewhat below what it had been during the greater part In plentiful years, the bounty, by occasion- of the last century, we should, in the same ing an extraordinary exportation, necessarily manner, impute this change, not to any fall raises the price of corn above what it other- in the real value of corn, but to some rise in wise would be in those years. To encourage the real value of silver in the European martillage, by keeping up the price of corn, even ket.

seasons.

The high price of corn during these ten or the average is likewise below, though not so twelve years past, indeed, has occasioned a much below, the general average of the sixtysuspicion that the real value of silver still con- four first years of the century. The year tinues to fall in the European market. This 1740, however, was a year of extraordinary high price of corn, however, seems evidently scarcity. These twenty years preceding 1750 to have been the effect of the extraordinary may very well be set in opposition to the unfavourableness of the seasons, and ought, twenty preceding 1770. As the former were therefore, to be regarded, not as a permanent, a good deal below the general average of the but as a transitory and occasional event. The century, notwithstanding the intervention of seasons, for these ten or twelve years past, one or two dear years; so the latter have been have been unfavourable through the greater a good deal above it, notwithstanding the interpart of Europe; and the disorders of Poland vention of one or two cheap ones, of 1759, for have very much increased the scarcity in all example. If the former have not been as much those countries, which, in dear years, used to below the general average as the latter have be supplied from that market. So long a been above it, we ought probably to impute it course of bad seasons, though not a very com- to the bounty. The change has evidently been mon event, is by no means a singular one; too sudden to be ascribed to any change in and whoever has inquired much into the his- the value of silver, which is always slow and tory of the prices of corn in former times, gradual. The suddenness of the effect can be will be at no loss to recollect several other accounted for only by a cause which can opeexamples of the same kind. Ten years of ex-rate suddenly, the accidental variations of the traordinary scarcity, besides, are not more wonderful than ten years of extraordinary The money price of labour in Great Britain plenty. The low price of corn, from 1741 to has, indeed, risen during the course of the 1750, both inclusive, may very well be set in present century. This, however, seems to be opposition to its high price during these last the effect, not so much of any diminution in eight or ten years. From 1741 to 1750, the the value of silver in the European market, as average price of the quarter of nine bushels of of an increase in the demand for labour in the best wheat, at Windsor market, it appears Great Britain, arising from the great, and alfrom the accounts of Eton college, was only most universal prosperity of the country. In L.1 13 91, which is nearly 6s. 3d. below France, a country not altogether so prosperthe average price of the sixty-four first years ous, the money price of labour has, since the of the present century. The average price of middle of the last century, been observed to the quarter of eight bushels of middle wheat sink gradually with the average money price comes out, according to this account, to have of corn. Both in the last century and in the been, during these ten years, only L.1: 6: 8. present, the day wages of common labour are Between 1741 and 1750, however, the there said to have been pretty uniformly about bounty must have hindered the price of corn the twentieth part of the average price of the from falling so low in the home market as it septier of wheat; a measure which contains a aaturally would have done. During these little more than four Winchester bushels. ten years, the quantity of all sorts of grain Great Britain, the real recompence of labour, exported, it appears from the custom-house it has already been shewn, the real quantities books, amounted to no less than 8,029,156 of the necessaries and conveniencies of life quarters, one bushel. The bounty paid for this which are given to the labourer, has increased amounted to L. 1,514,962: 17: 4. In 1749, accordingly, Mr Pelham, at that time prime minister, observed to the house of commons, that, for the three years preceding, a very extraordinary sum had been paid as bounty for the exportation of corn. He had good reason to make this observation, and in the following year he might have had still better. In that single year, the bounty paid amounted For some time after the first discovery of to no less than L.324,176: 10: 6.* It is un- America, silver would continue to sell at its necessary to observe how much this forced ex- former, or not much below its former price. portation must have raised the price of corn | The profits of mining would for some time be above what it otherwise would have been in very great, and much above their natural rate. the home market. Those who imported that metal into Europe,

rest.

In

considerably during the course of the present century. The rise in its money price seems to have been the effect, not of any diminution of the value of silver in the general market of Europe, but of a rise in the real price of labour, in the particular market of Great Bri. tain, owing to the peculiarly happy circumstances of the country.

At the end of the accounts annexed to this however, would soon find that the whole anchapter the reader will find the particular ac-nual importation could not be disposed of at count of those ten years separated from the this high price. Silver would gradually exHe will find there, too, the particular change for a smaller and a smaller quantity account of the preceding ten years, of which of goods. Its price would sink gradually lower and lower, till it fell to its natural price; for to what was just sufficient to pay, accord.

* See Tracts on the Corn Trade. Tract 3.