The Works of the Right Honourable Edmund Burke
Chapter 108 : The balance between consumption and production makes price. The market settles, and al

The balance between consumption and production makes price. The market settles, and alone can settle, that price. Market is the meeting and conference of the _consumer_ and _producer_, when they mutually discover each other's wants. n.o.body, I believe, has observed with any reflection what market is, without being astonished at the truth, the correctness, the celerity, the general equity, with which the balance of wants is settled. They who wish the destruction of that balance, and would fain by arbitrary regulation decree that defective production should not be compensated by increased price, directly lay their _axe_ to the root of production itself. They may, even in one year of such false policy, do mischiefs incalculable; because the trade of a farmer is, as I have before explained, one of the most precarious in its advantages, the most liable to losses, and the least profitable of any that is carried on. It requires ten times more of labor, of vigilance, of attention, of skill, and, let me add, of good fortune also, to carry on the business of a farmer with success, than what belongs to any other trade.

Seeing things in this light, I am far from presuming to censure the late circular instruction of Council to lord-lieutenants, but I confess I do not clearly discern its object. I am greatly afraid that the inquiry will raise some alarm, as a measure leading to the French system of putting corn into requisition. For that was preceded by an inquisition somewhat similar in its principle, though, according to their mode, their principles are full of that violence which _here_ is not much to be feared. It goes on a principle directly opposite to mine: it presumes that the market is no fair _test_ of plenty or scarcity. It raises a suspicion, which may affect the tranquillity of the public mind, "that the farmer keeps back, and takes unfair advantages by delay"; on the part of the dealer, it gives rise obviously to a thousand nefarious speculations.

In case the return should on the whole prove favorable, is it meant to ground a measure for encouraging exportation and checking the import of corn? If it is not, what end can it answer? And I believe it is not.

This opinion may be fortified by a report gone abroad, that intentions are entertained of erecting public granaries, and that this inquiry is to give government an advantage in its purchases.

I hear that such a measure has been proposed, and is under deliberation: that is, for government to set up a granary in every market-town, at the expense of the state, in order to extinguish the dealer, and to subject the farmer to the consumer, by securing corn to the latter at a certain and steady price.

If such a scheme is adopted, I should not like to answer for the safety of the granary, of the agents, or of the town itself in which the granary was erected: the first storm of popular frenzy would fall upon that granary.

So far in a political light.

In an economical light, I must observe that the construction of such granaries throughout the kingdom would be at an expense beyond all calculation. The keeping them up would be at a great charge. The management and attendance would require an army of agents, store-keepers, clerks, and servants. The capital to be employed in the purchase of grain would be enormous. The waste, decay, and corruption would be a dreadful drawback on the whole dealing; and the dissatisfaction of the people, at having decayed, tainted, or corrupted corn sold to them, as must be the case, would be serious.

This climate (whatever others may be) is not favorable to granaries, where wheat is to be kept for any time. The best, and indeed the only good granary, is the rick-yard of the farmer, where the corn is preserved in its own straw, sweet, clean, wholesome, free from vermin and from insects, and comparatively at a trifle of expense. This, and the barn, enjoying many of the same advantages, have been the sole granaries of England from the foundation of its agriculture to this day.

All this is done at the expense of the undertaker, and at his sole risk.

He contributes to government, he receives nothing from it but protection, and to this he has a _claim_.

The moment that government appears at market, all the principles of market will be subverted. I don't know whether the farmer will suffer by it, as long as there is a tolerable market of compet.i.tion; but I am sure, that, in the first place, the trading government will speedily become a bankrupt, and the consumer in the end will suffer. If government makes all its purchases at once, it will instantly raise the market upon itself. If it makes them by degrees, it must follow the course of the market. If it follows the course of the market, it will produce no effect, and the consumer may as well buy as he wants; therefore all the expense is incurred gratis.

But if the object of this scheme should be, what I suspect it is, to destroy the dealer, commonly called the middle-man, and by incurring a voluntary loss to carry the baker to deal with government, I am to tell them that they must set up another trade, that of a miller or a meal-man, attended with a new train of expenses and risks. If in both these trades they should succeed, so as to exclude those who trade on natural and private capitals, then they will have a monopoly in their hands, which, under the appearance of a monopoly of capital, will, in reality, be a monopoly of authority, and will ruin whatever it touches.

The agriculture of the kingdom cannot stand before it.

A little place like Geneva, of not more than from twenty-five to thirty thousand inhabitants,--which has no territory, or next to none,--which depends for its existence on the good-will of three neighboring powers, and is of course continually in the state of something like a _siege_, or in the speculation of it,--might find some resource in state granaries, and some revenue from the monopoly of what was sold to the keepers of public-houses. This is a policy for a state too small for agriculture. It is not (for instance) fit for so great a country as the Pope possesses,--where, however, it is adopted and pursued in a greater extent, and with more strictness. Certain of the Pope's territories, from whence the city of Rome is supplied, being obliged to furnish Rome and the granaries of his Holiness with corn at a certain price, that part of the Papal territories is utterly ruined. That ruin may be traced with certainty to this sole cause; and it appears indubitably by a comparison of their state and condition with that of the other part of the ecclesiastical dominions, not subjected to the same regulations, which are in circ.u.mstances highly flouris.h.i.+ng.

The reformation of this evil system is in a manner impracticable. For, first, it does keep bread and all other provisions equally subject to the chamber of supply, at a pretty reasonable and regular price, in the city of Rome. This preserves quiet among the numerous poor, idle, and naturally mutinous people of a very great capital. But the quiet of the town is purchased by the ruin of the country and the ultimate wretchedness of both. The next cause which renders this evil incurable is the jobs which have grown out of it, and which, in spite of all precautions, would grow out of such things even under governments far more potent than the feeble authority of the Pope.

This example of Rome, which has been derived from the most ancient times, and the most flouris.h.i.+ng period of the Roman Empire, (but not of the Roman agriculture,) may serve as a great caution to all governments not to attempt to feed the people out of the hands of the magistrates.

If once they are habituated to it, though but for one half-year, they will never be satisfied to have it otherwise. And having looked to government for bread, on the very first scarcity they will turn and bite the hand that fed them. To avoid that _evil_, government will redouble the causes of it; and then it will become inveterate and incurable.

I beseech the government (which I take in the largest sense of the word, comprehending the two Houses of Parliament) seriously to consider that years of scarcity or plenty do not come alternately or at short intervals, but in pretty long cycles and irregularly, and consequently that we cannot a.s.sure ourselves, if we take a wrong measure, from the temporary necessities of one season, but that the next, and probably more, will drive us to the continuance of it; so that, in my opinion, there is no way of preventing this evil, which goes to the destruction of all our agriculture, and of that part of our internal commerce which touches our agriculture the most nearly, as well as the safety and very being of government, but manfully to resist the very first idea, speculative or practical, that it is within the competence of government, taken as government, or even of the rich, as rich, to supply to the poor those necessaries which it has pleased the Divine Providence for a while to withhold from them. We, the people, ought to be made sensible that it is not in breaking the laws of commerce, which are the laws of Nature, and consequently the laws of G.o.d, that we are to place our hope of softening the Divine displeasure to remove any calamity under which we suffer or which hangs over us.

So far as to the principles of general policy.

As to the state of things which is urged as a reason to deviate from them, these are the circ.u.mstances of the harvest of 1794 and 1795. With regard to the harvest of 1794, in relation to the n.o.blest grain, wheat, it is allowed to have been somewhat short, but not excessively,--and in quality, for the seven-and-twenty years during which I have been a farmer, I never remember wheat to have been so good. The world were, however, deceived in their speculations upon it,--the farmer as well as the dealer. Accordingly the price fluctuated beyond anything I can remember: for at one time of the year I sold my wheat at 14_l._ a load, (I sold off all I had, as I thought this was a reasonable price,) when at the end of the season, if I had then had any to sell, I might have got thirty guineas for the same sort of grain. I sold all that I had, as I said, at a comparatively low price, because I thought it a good price, compared with what I thought the general produce of the harvest; but when I came to consider what my own _total_ was, I found that the quant.i.ty had not answered my expectation. It must be remembered that this year of produce, (the year 1794,) short, but excellent, followed a year which was not extraordinary in production, nor of a superior quality, and left but little in store. At first, this was not felt, because the harvest came in unusually early,--earlier than common by a full month.

The winter, at the end of 1794 and beginning of 1795, was more than usually unfavorable both to corn and gra.s.s, owing to the sudden relaxation of very rigorous frosts, followed by rains, which were again rapidly succeeded by frosts of still greater rigor than the first.

Much wheat was utterly destroyed. The clover-gra.s.s suffered in many places. What I never observed before, the rye-gra.s.s, or coa.r.s.e bent, suffered more than the clover. Even the meadow-gra.s.s in some places was killed to the very roots. In the spring appearances were better than we expected. All the early sown grain recovered itself, and came up with great vigor; but that which was late sown was feeble, and did not promise to resist any blights in the spring, which, however, with all its unpleasant vicissitudes, pa.s.sed off very well; and nothing looked better than the wheat at the time of blooming;--but at that most critical time of all, a cold, dry east wind, attended with very sharp frosts, longer and stronger than I recollect at that time of year, destroyed the flowers, and withered up, in an astonis.h.i.+ng manner, the whole side of the ear next to the wind. At that time I brought to town some of the ears, for the purpose of showing to my friends the operation of those unnatural frosts, and according to their extent I predicted a great scarcity. But such is the pleasure of agreeable prospects, that my opinion was little regarded.

On thres.h.i.+ng, I found things as I expected,--the ears not filled, some of the capsules quite empty, and several others containing only withered, hungry grain, inferior to the appearance of rye. My best ears and grain were not fine; never had I grain of so low a quality: yet I sold one load for 21_l._ At the same time I bought my seed wheat (it was excellent) at 23_l._ Since then the price has risen, and I have sold about two load of the same sort at 23_l._ Such was the state of the market when I left home last Monday. Little remains in my barn. I hope some in the rick may be better, since it was earlier sown, as well as I can recollect. Some of my neighbors have better, some quite as bad, or even worse. I suspect it will be found, that, wherever the blighting wind and those frosts at blooming-time have prevailed, the produce of the wheat crop will turn out very indifferent. Those parts which have escaped will, I can hardly doubt, have a reasonable produce.

As to the other grains, it is to be observed, as the wheat ripened very late, (on account, I conceive, of the blights,) the barley got the start of it, and was ripe first. The crop was with me, and wherever my inquiry could reach, excellent; in some places far superior to mine.

The clover, which came up with the barley, was the finest I remember to have seen.

The turnips of this year are generally good.

The clover sown last year, where not totally destroyed, gave two good crops, or one crop and a plentiful feed; and, bating the loss of the rye-gra.s.s, I do not remember a better produce.

The meadow-gra.s.s yielded but a middling crop, and neither of the sown or natural gra.s.s was there in any farmer's possession any remainder from the year worth taking into account. In most places there was none at all.

Oats with me were not in a quant.i.ty more considerable than in commonly good seasons; but I have never known them heavier than they were in other places. The oat was not only an heavy, but an uncommonly abundant crop.

My ground under pease did not exceed an acre or thereabouts, but the crop was great indeed. I believe it is throughout the country exuberant.

It is, however, to be remarked, as generally of all the grains, so particularly of the pease, that there was not the smallest quant.i.ty in reserve.

The demand of the year must depend solely on its own produce; and the price of the spring corn is not to be expected to fall very soon, or at any time very low.

Uxbridge is a great corn market. As I came through that town, I found that at the last market-day barley was at forty s.h.i.+llings a quarter.

Oats there were literally none; and the inn-keeper was obliged to send for them to London. I forgot to ask about pease. Potatoes were 5_s_. the bushel.

In the debate on this subject in the House, I am told that a leading member of great ability, _little conversant in these matters_, observed, that the general uniform dearness of butcher's meat, b.u.t.ter, and cheese could not be owing to a defective produce of wheat; and on this ground insinuated a suspicion of some unfair practice on the subject, that called for inquiry.

Unquestionably, the mere deficiency of wheat could not cause the dearness of the other articles, which extends not only to the provisions he mentioned, but to every other without exception.

The cause is, indeed, so very plain and obvious that the wonder is the other way. When a properly directed inquiry is made, the gentlemen who are amazed at the price of these commodities will find, that, when hay is at six pound a load, as they must know it is, herbage, and for more than one year, must be scanty; and they will conclude, that, if gra.s.s be scarce, beef, veal, mutton, b.u.t.ter, milk, and cheese _must_ be dear.

But to take up the matter somewhat more in detail.--If the wheat harvest in 1794, excellent in quality, was defective in quant.i.ty, the barley harvest was in quality ordinary enough, and in quant.i.ty deficient. This was soon felt in the price of malt.

Another article of produce (beans) was not at all plentiful. The crop of pease was wholly destroyed, so that several farmers pretty early gave up all hopes on that head, and cut the green haulm as fodder for the cattle, then peris.h.i.+ng for want of food in that dry and burning summer.

I myself came off better than most: I had about the fourth of a crop of pease.

It will be recollected, that, in a manner, all the bacon and pork consumed in this country (the far largest consumption of meat out of towns) is, when growing, fed on gra.s.s, and on whey or skimmed milk,--and when fatting, partly on the latter. This is the case in the dairy countries, all of them great breeders and feeders of swine; but for the much greater part, and in all the corn countries, they are fattened on beans, barley-meal, and pease. When the food of the animal is scarce, his flesh must be dear. This, one would suppose, would require no great penetration to discover.

This failure of so very large a supply of flesh in one species naturally throws the whole demand of the consumer on the diminished supply of all kinds of flesh, and, indeed, on all the matters of human sustenance.

Nor, in my opinion, are we to expect a greater cheapness in that article for this year, even though corn should grow cheaper, as it is to be hoped it will. The store swine, from the failure of subsistence last year, are now at an extravagant price. Pigs, at our fairs, have sold lately for fifty s.h.i.+llings, which two years ago would not have brought more than twenty.

As to sheep, none, I thought, were strangers to the general failure of the article of turnips last year: the early having been burned, as they came up, by the great drought and heat; the late, and those of the early which had escaped, were destroyed by the chilling frosts of the winter and the wet and severe weather of the spring. In many places a full fourth of the sheep or the lambs were lost; what remained of the lambs were poor and ill fed, the ewes having had no milk. The calves came late, and they were generally an article the want of which was as much to be dreaded as any other. So that article of food, formerly so abundant in the early part of the summer, particularly in London, and which in a great part supplied the place of mutton for near two months, did little less than totally fail.

All the productions of the earth link in with each other. All the sources of plenty, in all and every article, were dried or frozen up.

The scarcity was not, as gentlemen seem to suppose, in wheat only.

Another cause, and that not of inconsiderable operation, tended to produce a scarcity in flesh provision. It is one that on many accounts cannot be too much regretted, and the rather, as it was the sole _cause_ of a scarcity in that article which arose from the proceedings of men themselves: I mean the stop put to the distillery.

The hogs (and that would be sufficient) which were fed with the waste wash of that produce did not demand the fourth part of the corn used by farmers in fattening them. The spirit was nearly so much clear gain to the nation. It is an odd way of making flesh cheap, to stop or check the distillery.

The distillery in itself produces an immense article of trade almost all over the world,--to Africa, to North America, and to various parts of Europe. It is of great use, next to food itself, to our fisheries and to our whole navigation. A great part of the distillery was carried on by damaged corn, unfit for bread, and by barley and malt of the lowest quality. These things could not be more unexceptionably employed. The domestic consumption of spirits produced, without complaints, a very great revenue, applicable, if we pleased, in bounties, to the bringing corn from other places, far beyond the value of that consumed in making it, or to the encouragement of its increased production at home.

As to what is said, in a physical and moral view, against the home consumption of spirits, experience has long since taught me very little to respect the declamations on that subject. Whether the thunder of the laws or the thunder of eloquence "is hurled on _gin_" always I am thunder-proof. The alembic, in my mind, has furnished to the world a far greater benefit and blessing than if the _opus maximum_ had been really found by chemistry, and, like Midas, we could turn everything into gold.

Undoubtedly there may be a dangerous abuse in the excess of spirits; and at one time I am ready to believe the abuse was great. When spirits are cheap, the business of drunkenness is achieved with little time or labor; but that evil I consider to be wholly done away. Observation for the last forty years, and very particularly for the last thirty, has furnished me with ten instances of drunkenness from other causes for one from this. Ardent spirit is a great medicine, often to remove distempers, much more frequently to prevent them, or to chase them away in their beginnings. It is not nutritive in _any great_ degree. But if not food, it greatly alleviates the want of it. It invigorates the stomach for the digestion of poor, meagre diet, not easily alliable to the human const.i.tution. Wine the poor cannot touch. Beer, as applied to many occasions, (as among seamen and fishermen, for instance,) will by no means do the business. Let me add, what wits inspired with champagne and claret will turn into ridicule,--it is a medicine for the mind.

Under the pressure of the cares and sorrows of our mortal condition, men have at all times and in all countries called in some physical aid to their moral consolations,--wine, beer, opium, brandy, or tobacco.

I consider, therefore, the stopping of the distillery, economically, financially, commercially, medicinally, and in some degree morally too, as a measure rather well meant than well considered. It is too precious a sacrifice to prejudice.

Gentlemen well know whether there be a scarcity of partridges, and whether that be an effect of h.o.a.rding and combination. All the tame race of birds live and die as the wild do.