Econlib

The Library

Other Sites

Front Page arrow Titles (by Subject) arrow CORN IMPORTATION BILL 3 June 1822 - The Works and Correspondence of David Ricardo, Vol. 5 Speeches and Evidence

Return to Title Page for The Works and Correspondence of David Ricardo, Vol. 5 Speeches and Evidence

CORN IMPORTATION BILL 3 June 1822 - David Ricardo, The Works and Correspondence of David Ricardo, Vol. 5 Speeches and Evidence [1819]

Edition used:

The Works and Correspondence of David Ricardo, ed. Piero Sraffa with the Collaboration of M.H. Dobb (Indianapolis: Liberty Fund, 2005). Vol. 5 Speeches and Evidence 1815-1823.

Part of: The Works and Correspondence of David Ricardo, 11 vols (Sraffa ed.)

About Liberty Fund:

Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.


CORN IMPORTATION BILL
3 June 1822

The new corn bill based on Lord Londonderry’s resolutions [cp. above, p. 155], having been brought in, Mr. Canning proposed the addition of a clause to allow the taking of foreign corn out of the warehouse for being ground into flour for exportation. Sir T. Lethbridge opposed the clause as likely to promote the introduction into the home market of foreign corn in the shape of flour.

Mr. Ricardo agreed, that if the clause could not be introduced with a full security against the flour coming into the home market it ought not to be admitted; but, if that security could be found, it would be most unjust to deprive the holders of foreign corn of it. He thought the bill of the noble lord would be a great improvement on the present law. The hon. member for Cumberland1 founded all his arguments on the value of corn in pounds sterling; but he (Mr. R.) did not regard the pound sterling. He was anxious that the people should have an abundant supply of corn and an increase of their comforts, and he thought a greater freedom in the trade calculated to produce those effects. He differed entirely from the hon. member, as to the ill effects which it would have upon the demand for labour.

The clause was agreed to.

On the question that 70s. be the permanent price at which wheat shall be imported, Mr. Whitmore moved to substitute 64s.; Mr. Wodehouse moved to substitute 75s.

Mr. Ricardo1 expressed his surprise at the proposition of the hon. member for Norfolk;2 since the most active supporters of the agricultural interest had declared that 67s. would afford adequate protection to the farmer. He thought the proposition of the hon. member for Bridgenorth3 deserving the support of the House. High protecting prices would only benefit the landlord at the expense of the rest of the community, not excepting even the farmer.

The original clause was agreed to.

10 June 1822

On the report stage, Lord Londonderry said that as there was so strong an opinion against the clause for grinding foreign wheat, he would oppose it.

Mr. Ricardo said, that unless the agriculturists could show that injury would arise to them from the adoption of the clause, parliament should not hesitate to give to the foreign importer the proposed relief.

The house divided on the clause: Ayes, 21; Noes, 116. Ricardo voted for the clause. The bill was then passed.

[1 ]Mr. Curwen. His speech is not reported in Hansard.

[1 ]This speech is reported more at length in the Morning Chronicle: ‘Mr. Ricardo observed, that it had been not long ago admitted by the Member for Wiltshire (Mr. Benett), who could not be supposed too favourable to his views, that 65s. or 66s. was a fair protecting price. His Honourable Friend, however, did not propose that the import price should be reduced to 64s. till the price had previously reached 80s.; for such would be the effect of the Amendment engrafted on the Bill. When that had happened the markets of the world would be restored to that state in which such an import price would be perfectly safe. The Amendment, therefore, was not rash or theoretical, but a sound and well matured proposition, and was to be received with the greater attention, as it came from a Gentleman whose property entirely consisted of land. All they had hitherto heard of the necessity of raising prices was very well if they legislated only for the landlords; but they could give nothing to them without taking it out of the pockets of the people, and unfortunately, for every one pound they gave the landlord they took two or three from the consumer, the difference being swallowed up in the cost of production. He had hitherto asked in vain what protection this measure would afford to the farmer? To the farmer it must be ruinous. When his crop was defective he was deprived of his high price, and when his harvest was abundant it was impossible for him to get anything like a remunerating price.’

[2 ]Mr. Wodehouse.

[3 ]Mr. Whitmore.