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Show - 194 OF THE REN'f OF 1. .~1: . . ND. [ CH. II I. ders the industry of all those nations, \vhere corn and labour are high, peculiarly productive in the purchase of foreign con1modities. But this subject shall be n1ore fully discussed on another occasion. Our principal business at present is \Vith the second of the t""'·o causes before stated. The second cause of the high con1parative price of corn is the high comparative cost of production. If \Ve could suppose the value of n1oney to be the same in all countries, then the cause of the higher n1oney price of corn in one country con1pare~ \vith another, \vould he the greater quantity of capital and labour, \vhich tnust be ·en1ployed to produce it: and the reason 'vhy the price of corn \vould be higher, and continua1ly rising i-n countries already rich, and still advancing in prosperity and population, \vould be to be found in the necessity of resorting constantly to poorer land-to n1achines which \voulcl require a greater expenditure to \vork them-and vvhich would consequently occasion each fresh addition to the raw produce of the country to be purchased at a greater cost-in short, · it 'vould be found in the important truth that corn, · in a progressive country, is sold at the price necessary to yield the actual supply ; and that, as this supply becotnes more and more difficult, the price must rise in proportion. The price of corn, as detern)ined by this cause, will of course be greatly n1odified by other circun1- stances ; by direct and indirect tax'ation; by i1nproven1ents in the modes of c.ultivation; by the saving of labour on the land; and particularly by the in1portations of foreign corn. The latter cause, SEC. VI.] Ol•~ THE R.ENT OF LAND. 195 indeed, may,do a.way, in a considerable degree, the usual effects of great wealth on the price of corn; and this \Vealth will then she\v itself in a different forn1. Let us suppose se~ven or eight large countries not very distant fron1 each other, and not very differently situated vvith regard to the n1ines. Let us suppose further, that neither their soils nor their skill in agriculture are essentially unlike; that their currencies are in a natural state ; their taxes nothing; and that ev~ry trade is free, except the trade in corn. Let us 110\V suppose one of them very greatly to increase in capital and n1anufacturing skill above the rest, and to becon1e in con- · sequence n1uch n1ore rich and populous. I should say, that this con1parative increase of riches could not possibly take place, vvithout a con1parative advance in the price of ra \ 'V produce; and that such advance of price would, under the circun1stances supposed, be the natural sign and absolutely necessary consequence, of the increased \Veal th and population of the country in question. Let us novv suppose the satne countries to have· the n1ost perfect freedom of intercourse in corn, and the expenses of freight~ &c. to be quite inconsiclerable : And let us still suppose one of then1 to increase very greatly above the res t, in n1anufacturing capital and skill, in \Vealth and population: I should then say, that as the irnportation of corn \Vould prevent any great difference in the price of ra \V produce, it would prevent any oTeat difference . 0 111 the quantity of capital laid out up~n the land, 02 |
