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improvements　in　agriculture　and　a　good　soil　may　keep　the　price　of

produce　low；　and　the　country　independent　of　foreign　corn；　in

spite　of　considerable　wealth。　But　the　principles　laid　down　are

the　general　principles　on　the　subject；　and　in　applying　them　to

any　particular　case；　the　particular　circumstances　of　such　case

must　always　be　taken　into　consideration。

　　　　With　regard　to　improvements　in　agriculture；　which　in　similar

soils　is　the　great　cause　which　retards　the　advance　of　price

compared　with　the　advance　of　produce；　although　they　are　sometimes

very　powerful；　they　are　rarely　found　sufficient　to　balance　the

necessity　of　applying　to　poorer　land；　or　inferior　machines。　In

this　respect；　raw　produce　is　essentially　different　from

manufactures。

　　　　The　real　price　of　manufactures；　the　quantity　of　labour　and

capital　necessary　to　produce　a　given　quantity　of　them；　is　almost

constantly　diminishing；　while　the　quantity　of　labour　and　capital；

necessary　to　procure　the　last　addition　that　has　been　made　to　the

raw　produce　of　a　rich　and　advancing　country；　is　almost　constantly

increasing。　We　see　in　consequence；　that　in　spite　of　continued

improvements　in　agriculture；　the　money　price　of　corn　is　ceteris

paribus　the　highest　in　the　richest　countries；　while　in　spite　of

this　high　price　of　corn；　and　consequent　high　price　of　labour；　the

money　price　of　manufactures　still　continues　lower　than　in　poorer

countries。

　　　　I　cannot　then　agree　with　Adam　Smith；　in　thinking　that　the　low

value　of　gold　and　silver　is　no　proof　of　the　wealth　and

flourishing　state　of　the　country；　where　it　takes　place。　Nothing

of　course　can　be　inferred　from　it；　taken　absolutely；　except　the

abundance　of　the　mines；　but　taken　relatively；　or　in　comparison

with　the　state　of　other　countries；　much　may　be　inferred　from　it。

If　we　are　to　measure　the　value　of　the　precious　metals　in

different　countries；　and　at　different　periods　in　the　same

country；　by　the　price　of　corn　and　labour；　which　appears　to　me　to

be　the　nearest　practical　approximation　that　can　be　adopted　（and

in　fact　corn　is　the　measure　used　by　Adam　Smith　himself）；　it

appears　to　me　to　follow；　that　in　countries　which　have　a　frequent

commercial　intercourse　with　each　other；　which　are　nearly　at　the

same　distance　from　the　mines；　and　are　not　essentially　different

in　soil；　there　is　no　more　certain　sign；　or　more　necessary

consequence　of　superiority　of　wealth；　than　the　low　value　of　the

precious　metals；　or　the　high　price　of　raw　produce。（15*）

　　　　It　is　of　importance　to　ascertain　this　point；　that　we　may　not

complain　of　one　of　the　most　certain　proofs　of　the　prosperous

condition　of　a　country。

　　　　It　is　not　of　course　meant　to　be　asserted；　that　the　high　price

of　raw　produce　is；　separately　taken；　advantageous　to　the

consumer；　but　that　it　is　the　necessary　concomitant　of　superior

and　increasing　wealth；　and　that　one　of　them　cannot　be　had　without

the　other。（16*）

　　　　With　regard　to　the　labouring　classes　of　society；　whose

interests　as　consumers　may　be　supposed　to　be　most　nearly

concerned；　it　is　a　very　short…sighted　view　of　the　subject；　which

contemplates；　with　alarm；　the　high　price　of　corn　as　certainly

injurious　to　them。　The　essentials　to　their　well　being　are　their

own　prudential　habits；　and　the　increasing　demand　for　labour。　And

I　do　not　scruple　distinctly　to　affirm；　that　under　similar　habits；

and　a　similar　demand　for　labour；　the　high　price　of　corn；　when　it

has　had　time　to　produce　its　natural　effects；　so　far　from　being　a

disadvantage　to　them；　is　a　positive　and　unquestionable　advantage。

To　supply　the　same　demand　for　labour；　the　necessary　price　of

production　must　be　paid；　and　they　must　be　able　to　command　the

same　quantities　of　the　necessaries　of　life；　whether　they　are　high

or　low　in　price。（17*）　But　if　they　are　able　to　command　the　same

quantity　of　necessaries；　and　receive　a　money　price　for　their

labour；　proportioned　to　their　advanced　price；　there　is　no　doubt

that；　with　regard　to　all　the　objects　of　convenience　and　comfort；

which　do　not　rise　in　proportion　to　corn　（and　there　are　many　such

consumed　by　the　poor）；　their　condition　will　be　most　decidedly

improved。

　　　　The　reader　will　observe　in　what　manner　I　have　guarded　the

proposition。　I　am　well　aware；　and　indeed　have　myself　stated　in

another　place；　that　the　price　of　provisions　often　rises；　without

a　proportionate　rise　of　labour：　but　this　cannot　possibly　happen

for　any　length　of　time；　if　the　demand　for　labour　continues

increasing　at　the　same　rate；　and　the　habits　of　the　labourer　are

not　altered；　either　with　regard　to　prudence；　or　the　quantity　of

work　which　he　is　disposed　to　perform。

　　　　The　peculiar　evil　to　be　apprehended　is；　that　the　high　money

price　of　labour　may　diminish　the　demand　for　it；　and　that　it　has

this　tendency　will　be　readily　allowed；　particularly　as　it　tends

to　increase　the　prices　of　exportable　commodities。　But　repeated

experience　has　shown　us　that　such　tendencies　are　continually

counterbalanced；　and　more　than　counterbalanced　by　other

circumstances。　And　we　have　witnessed；　in　our　own　country；　a

greater　and　more　rapid　extension　of　foreign　commerce；　than

perhaps　was　ever　known；　under　the　apparent　disadvantage　of　a　very

great　increase　in　the　price　of　corn　and　labour；　compared　with　the

prices　of　surrounding　countries。

　　　　On　the　other　hand；　instances　everywhere　abound　of　a　very　low

money　price　of　labour；　totally　failing　to　produce　an　increasing

demand　for　it。　And　among　the　labouring　classes　of　different

countries；　none　certainly　are　so　wretched　as　those；　where　the

demand　for　labour；　and　the　population　are　stationary；　and　yet　the

prices　of　provisions　extremely　low；　compared　with　manufactures

and　foreign　commodities。　However　low　they　may　be；　it　is　certain；

that　under　such　circumstances；　no　more　will　fall　to　the　share　of

the　labourer　than　is　necessary　just　to　maintain　the　actual

population；　and　his　condition　will　be　depressed；　not　only　by　the

stationary　demand　for　labour；　but　by　the　additional　evil　of　being

able　to　command　but　a　small　portion　of　manufactures　or　foreign

commodities；　with　the　little　surplus　which　he　may　possess。　If；

for　instance；　under　a　stationary　population；　we　suppose；　that　in

average　families　two　thirds　of　the　wages　estimated　in　corn　are

spent　in　necessary　provisions；　it　will　make　a　great　difference　in

the　condition　of　the　poor；　whether　the　remaining　one　third　will

command　few　or　many　conveniencies　and　comforts；　and　almost

invariably；　the　higher　is　the　price　of　corn；　the　more　indulgences

will　a　given　surplus　purchase。

　　　　The　high　or　low　price　of　provisions；　therefore；　in　any

country　is　evidently　a　most　uncertain　criterion　of　the　state　of

the　poor　in　that　country。　Their　condition　obviously　depends　upon

other　more　powerful　causes；　and　it　is　probably　true；　that　it　is

as　frequently　good。　or　perhaps　more　frequently　so；　in　countries

where　corn　is　high；　than　where　it　is　low。

　　　　　At　the　same　time　it　should　be　observed；　that　the　high　price

of　corn；　occasioned　by　the　difficulty　of　procuring　it；　may　be

considered　as　the　ultimate　check　to　the　indefinite　progress　of　a

country　in　wealth　and　population。　And；　although　the　actual

progress　of　countries　be　subject　to　great　variations　in　their

rate　of　movement；　both　from　external　and　internal　causes；　and　it

would　be　rash　to　say　that　a　state　which　is　well　peopled　and

proceeding　rather　slowly　at　present；　may　not　proceed　rapidly

forty　years　hence；　yet　it　must　be　owned；　that　the　chances　of　a

future　rapid　progress　are　diminished　by　the　high　prices　of　corn

and　labour；　compared　with　other　countries。

　　　　It　is；　therefore；　of　great　importance；　that　these　prices

should　be　increased　as　little　as　possible　artificially；　that　is；

by　taxation。　But　every　tax　which　falls　upon　agricultural　capital

tends　to　check　the　application　of　such　capital；　to　the　bringing

of　fresh　land　under　cultivation；　and　the　improvement　of　the　old。

It　was　shown；　in　a　former　part　of　this　inquiry；　that　before　such

application　of　capital　could　take　place；　the　price　of　produce；

compared　with　the　instruments　of　production；　must　rise

sufficiently　to　pay　the　farmer。　But；　if　the　increasing

difficulties　to　be　overcome　are　aggravated　by　taxation；　it　is

necessary；　that　before　the　proposed　improvements　are　undertaken；

the　price　should　rise　sufficiently；　not　only　to　pay　the　farmer；

but　also　the　government。　And　every　tax；　which　falls　on

agricultural　capital；　either　prevents　a　proposed　improvement；　or

causes　it　to　be　purchased　at　a　higher　price。

　　　　When　new　leases　are　let；　these　taxes　are　generally　thrown　off

upon　the　landlord。　The　farmer　so　makes　his　bargain；　or　ought　so

to　make　it；　as　to　leave　himself；　after　every　expense　has　been

paid；　the　average　profits　of　agricultural　stock　in　the　actual

circumstances　of　the　country；　whatever　they　may　be；　and　in

whatever　manner　they　may　have　been　affected　by　taxes；

particularly　by　so　general　a　one　as　the　property　tax。　The　farmer；

therefore；　by　paying　a　less　rent　to　his