Blackwood's Edinburgh Magazine — Volume 55, No. 339, January, 1844

It is true, that our efforts to enter into commercial treaties with France and Portugal have not, as yet, been successful; but, formidable as are the obstacles at present in existence, we do not despair. Those least wonder at the present position of affairs who are best acquainted with the artificial and complicated positions of the respective countries, and their relations, and consequent policy, towards each other. Whatever can be done by man, is at this moment being done by Lord Aberdeen; and sooner than we have at present a right to expect, his indefatigable exertions may be crowned with success—not only in these, but in other quarters. All foreign Governments must be strongly influenced in such matters, by contemplating a steady and strong Government established in this country; and that object they see more nearly and distinctly every day. Such (without entering into details which would be inconsistent with either our space or our present object) is the general result—namely, the rapidly returning tide of prosperous commercial intercourse of the foreign policy of Conservative Government, which has raised Great Britain, within the short space of two years, to even a higher elevation among the nations of the world, than she had occupied before a "Liberal Ministry undertook the government of the country"—"a policy," to adopt the equally strong and just language of an able writer, "replete with auspicious evidences of the efficacy of intellect, combined with firmness, activity, and integrity, in restoring to wholesome and honourable order a chaotic jumble of anomalies—of humiliations and dangers—of fears, hatred, and confusion thrice trebly confounded."24

While thus successfully active abroad, have Ministers been either idle or unsuccessful at home? Let us look at their two main measures—the new tariff and the new corn-law.

The object of the first of these great measures was twofold—to give a healthy and speedy but permanent stimulus to trade and commerce; and, at the same time, to effect such a reduction of price in the leading articles of consumption as should greatly reduce the cost of living—a boon, of course, inexpressibly precious to the poorer classes. Mark the moment at which this bold and critical line of policy was conceived and carried into execution—namely, a moment when the nation was plunged into such a depth of gloom and distress as had very nearly induced utter despair! when there was a deficiency of five millions sterling in the revenue of the two preceding years, and a certainty of greatly augmented expenditure for the future, owing to our wars in the East and elsewhere. We say—mark this, in order to appreciate a display of the true genius of statesmanship. Foreseeing one effect of such a measure, namely, a serious reduction in the revenue derived from the customs, and which would commence with the bare announcement of such a measure, the Government had to consider whether it would prove a permanent or only a temporary reduction, and to act accordingly. After profound consideration, they satisfied themselves (whether justly or not remains to be seen) that the diminution of revenue would prove only temporary; and to secure the immediate benefits of the measure, they imposed a temporary income-tax, the onerous pressure of which was to cease as soon as matters should have come round again. That period they fixed at the expiration of three years. After an interval of two years, do their calculations appear to have been well or ill founded? Let us see. Early in March 1842 they announced the proposed new tariff, (instantly producing the effect on the customs duties which had been anticipated;) and succeeded in bringing it into operation on the 9th of the ensuing July. The deficiency of revenue which ensued was so very serious that it would have alarmed the whole country, but for their confidence in the firmness and sagacity of Ministers, particularly as evidenced by their announced measures. We have not at the present moment before us the earliest quarterly revenue returns of the period referred to; but it will suffice to state, that such had been the extent of the reductions effected, that the deficiency on the year ending on the 5th October 1843, amounted to no less a sum than L.1,136,000; the decrease on the quarter ending on that day being L.414,000. Still, however, each succeeding quarter—or at least the latter quarters—gave more satisfactory indications of a rallying revenue; and we are enabled to announce the highly gratifying fact that, up to the 8th of the present month (December,) the customs duties returns are of the most decisively improving character. The receipts of duties for the port of London alone, during that period, exceeds the receipt on the corresponding period of last year by L.206,000; while the returns from all the outports, especially from Liverpool, are of the same cheering character, and warrant us in predicting that the returns to be presented on the 5th of the ensuing month will afford a most triumphant proof of the accuracy of the Minister's calculations and the success of his policy; for be it borne in mind, moreover, that his income-tax realized, in the year ending on the 5th October last, the immense sum of L.5,052,000. As far, therefore, as concerns the direct financial effects of the new tariff and its counterbalancing income-tax, the results of Sir Robert Peel's policy are such as may stagger and confound the boldest of his opponents.

Now, however, for the two great objects of the new tariff, which were declared by Sir Robert Peel25 to be "the revival of commerce, and such an improvement in the manufacturing interest, as would react on every other interest in the country; and diminishing the prices of the articles of consumption and the cost of living."

With respect to the first of these objects, we had prepared a copious explanation of the highly satisfactory working of one great portion of the machine of the new tariff, viz. the relaxation of the taxes on the raw materials of manufacture; but it has occurred to us, that the necessity of our doing so has been entirely superseded by the following very remarkable admission, contained in a number of the Morning Chronicle newspaper, published towards the close of September last; an invaluable admission, tending to prove, out of the mouth of the bitterest opponent of the present Ministry, the general success of their domestic policy:—"Notwithstanding insurrection in Wales and agitation in Ireland, there are various circumstances in the present aspect of our national affairs of an encouraging and cheering nature. The first and most prominent thing which strikes an observer, is, the undoubted general revival of trade and commerce. Every thing seems to indicate that the morning is breaking; that the dreary night of disaster and suffering, through which all our material interests have been passing since 1836, is now well-nigh over. The hum of busy industry is once more heard throughout our manufacturing districts; our seaports begin once more to stir with business; merchants on 'Change have smiling faces; and the labouring population are once more finding employment easier of access; and wages are gently, slowly rising. This has not come upon us suddenly; it has been in operation since the end of last year; but so terrible was the depression, so gradual the improvement, that the effects of the revival could not be perceptible till within a recent period. Our exports of cotton and wool, during the present year, very considerably exceed those of a similar period in the preceding; and though there might be increase of export without increase of profit, the simple fact that the districts of our great manufacturing staples are now more active and busy than they have been for a very considerable period, coupled with the apparently well-founded belief that this increased activity is produced, not by speculative but genuine demand, are indications of the most pleasing and gratifying kind to all who are in the least concerned about the prosperity of the country. In addition to the improvement manifested in our staple articles of industry, other important interests are showing symptoms of decided improvement; even the iron-trade has got over its 'crisis;' and though we are very far indeed from having attained to a condition of prosperity, the steady, though slow, revival of every branch of industry, is a proof that the cause of the improvement must be a general one, operating universally." May we venture to suggest, that the worthy editor of the Morning Chronicle need not go about with a lantern to discover this cause?—that it is every where before his very eyes, under his very nose, in the form of the bold, but sagacious and consistent, policy pursued by the present Government?

With respect to the second great object of the new tariff, viz., the "Diminishing of the prices of the articles of consumption and the cost of living."

Has this great object, or has it not, been attained? Why, the reduced price of provisions is a matter of universal notoriety, and past all question. Unable to contest the existence of this most consolatory fact, the Opposition papers endeavoured to get up a diversion by frightening the farmers, whom they assured, that the admission of foreign live-stock would lead to a fearful depreciation in the value of British agricultural produce. The graziers and cattle-dealers were forthwith to find "their occupations gone." British pasture farming was to be annihilated, and an immense stimulus given to that of our continental rivals. Hereat the farmers pricked up their ears, and began to consider for a moment whether they should not join in the outcry against the new tariff. But the poor beasts that have come, doubtless much to their own surprise, across the water to us, looked heartily ashamed of themselves, on catching a glimpse of their plump, sleek brother beasts in England—and the farmers burst out a-laughing at sight of the lean kine that were to eat up the fat ones! The practical result has been, that between the 9th of July 1842, and the present time, there have not come over foreign cattle enough to make one week's show at Smithfield. But mark, the power of admitting foreign cattle and poultry, (on payment, however, of a considerable duty,26) conferred by the new tariff, is one that must be attended with infinite permanent benefits to the public, in its moderating influence upon the prices of animal food. Its working is in beautiful harmony with that of the newly modeled corn-laws, as we shall presently explain. In years of abundance, when plenty of meat is produced at home, the new tariff will be inoperative, as far as regards the actual importations of foreign cattle; but in years of scarcity at home, the expectation of a good price will induce the foreigner to send us a sufficient supply; for he will then be, and then only, able to repay himself the duty, and the heavy cost of sea-carriage. As prices fall, the inducement to import also declines. In short, "the inducement to importation falls with the fall, and rises with the rise of price. The painful contingency of continued bad seasons has thus, in some measure, been provided against. The new tariff is so adjusted, that when prices threaten to mount to an unfair and extravagant height, unjust to consumers, and dangerous to producers, in such contingencies a mediating power steps in, and brings things to an equilibrium."27 These great and obvious advantages of the new tariff, the opponents of Ministers, and especially their reckless and discreditable allies called the "Anti-corn-law League," see as plainly as we do; but their anxious aim is to conceal these advantages as much as possible from public view; and for this purpose they never willingly make any allusion to the tariff, or if forced to do so, underrate its value, or grossly misrepresent its operation. But we are convinced that this will not do. Proofs of their humbug and falsehood are, as it were, daily forcing themselves into the very stomachs of those whom once, when an incompetent Ministry was in power, these heartless impostors were able to delude. "A single shove of the bayonet," said Corporal Trim to Doctor Slop, "is worth all your fine discourses about the art of war;" and so the English operative may reply to the hireling "Leaguers," "This good piece of cheap beef and mutton, now smoking daintily before me, is worth all your palaver."

Before passing from the subject of the new tariff, let us observe, that the suddenness and vastness of its changes (some of which we consider to be of questionable propriety) for a time unavoidably deranged mercantile operations; and in doing so, as necessarily produced many cases of individual dissatisfaction and distress. Some of the persons thus situated angrily quitted the Conservative ranks for those of the Opposition; others, for a position of mortified neutrality: but we believe that many more, notwithstanding this sharp trial of their constancy, remained true to their principles, faithful to their party, and are now rewarded by seeing things coming rapidly round again, while unvarying and complete success has attended every other branch of the policy of Ministers. We know a good deal of the real state of opinion among the mercantile classes of the City of London; and believe we correctly represent it averse to further changes in our tariff-system, and coincident with the views expressed by Mr Baring in his address to the electors, when he deprecated "a constant change, unsettling men's minds, baffling all combinations, destroying all calculations, paralysing trade, and continuing the stagnation from which we are recovering;" and declared his belief "that the minister who applies the principles of free-trade with the most caution, deliberation, and judgment, is the statesman who merits the confidence of the commercial world." We now, however, quit the subject—interesting, indeed, and all-important—of the tariff, with the deliberate expression of our opinion, that it is, taken as a whole, a very bold, masterly, and successful stroke of policy. Now for the NEW CORN-LAW.

But how shall we deal with a topic with which the public has been so utterly sickened by the people calling themselves "The Anti-corn-law League?" We do not, nevertheless, despair of securing the attention of our readers to the few observations which we have to offer upon a subject which, however hackneyed, is one of paramount importance. We are satisfied that nine out of every ten even of newspaper readers turn with disgust from the columns headed "Anti-corn-law League," "Doings of the League," "Great Meeting of the Anti-corn-law League," and so forth; and, (making every allowance for the exigencies occasioned by the dearth of topics while Parliament is not sitting,) we are exceedingly surprised, that the great London newspapers should inflict upon their readers so much of the slang and drivel of the gentry in question. In the due prosecution of our subject, we cannot avoid the topic of the new corn-law, even were we so disposed; and we shall at once proceed to our task, with two objects in view—to vindicate the course pursued by Sir Robert Peel, and set forth, briefly and distinctly, those truly admirable qualities of the existing Corn-laws, which are either most imprudently misrepresented, or artfully kept out of view, by those who are now making such desperate efforts to overthrow it. "Mark how a plain tale shall set them down!"

Whether foreign corn should be admitted into this country on payment of fluctuating duties, or a fixed duty, or free of all duties, are obviously questions of the highest importance, involving extensive and complicated considerations. Sir Robert Peel, Lord John Russell, and the persons banded together under the name of "The Anti-corn-law League," may be taken as representing the classes of opinion which would respectively answer these three questions in the affirmative. All of them appealed to the nation at large on the last general election. The form in which the question was proposed to the country, it fell to the lot of the advocates of a fixed duty to prescribe, and they shaped it thus in the Queen's speech:—

"It will be for you to determine whether the corn-laws do not aggravate the natural fluctuations of supply; whether they do not embarrass trade, derange currency, and, by their operation, diminish the comforts and increase the privations of the great body of the community."

To this question the country returned a deliberate and peremptory answer in the NEGATIVE; expressing thereby its will, that the existing system, which admits foreign corn on payment of fluctuating duties, should continue. The country thus adopted the opinions of Sir Robert Peel, rejected those of Lord John Russell, and utterly scouted those of the "Anti-corn-law League," in spite of all their frantic exertions.

We believe that this deliberate decision of the nation, is that to which it will come whenever again appealed to; and is supported by reasons of cogency. The nation is thoroughly aware of the immense importance of upholding and protecting the agriculture of the country, and that to secure this grand object, it is necessary to admit foreign corn into the country, only when our deficiencies absolutely require it. That in the operation of the "sliding-scale of duties," and the exact distinction between its effect and that of the proposed fixed duty, is demonstrably this: that the former would admit foreign corn in dear years, excluding it in seasons of abundance; while the latter would admit foreign corn in seasons of abundance, and exclude it in dear years. Our present concern, however, is with the course taken by the present Government. Have they hitherto yielded to the clamour with which they have been assailed, and departed from the principle of affording efficient protection to the agriculture of the country? Not a hair's breadth; nor will they. We have seen that Sir Robert Peel, previously to the general election, declared his determination to adhere to the existing system of corn-laws, regulating the admission of foreign corn by the power of the sliding-scale of duties; but both he and the leading members of his party, had distinctly stated in Parliament, just before its dissolution, that while resolved to adhere to the principle of a sliding-scale, they would not pledge themselves to adhere to all the details of that scale. And they said well and wisely, for there were grave objections to some of those details. These objections they have removed, and infinitely added to the efficiency of the sliding-scale; but in removing the principal objections, they stirred a hornet's nest—they rendered furious a host of sleek gamblers in grain, who found their "occupation gone" suddenly! On the other hand, the Government conferred a great substantial benefit upon the country, by securing a just balance between protection to the British corn consumer and producer; removing, at the same time, from the latter, a long-existing source of jealousy and prejudice. A few words will suffice to explain the general scope of those alterations. Under they system established by statute 9 Geo. IV. c. 60, in the year 1828, the duty on foreign corn, up to the price of 68s. per quarter, was so high, and declined so very slowly, (L.1, 5s. 8d., L.1. 4s. 8d., L.1, 3s. 8d., L.1, 2s. 8d., L.1, 1s. 8d., L.1, 0s. 8d., 18s. 8d.,) as to amount to a virtual prohibition against importation. But when the price mounted from 68s. to 72s. per quarter, the duty declined with such great rapidity. (16s 8d., 13s. 8d., 10s. 8d., 6s. 8d., 2s. 8d.,) as to occasion the alarming and frequently recurring evils of glut and panic. Now the following was the mode in which these serious defects in the law of 1828 were taken advantage of by the aforesaid desperate and greedy "rogues in grain," who are utterly prostrated by the new system; they entered into a combination, for the purpose of raising the apparent average price of corn, and forcing it up to the point at which they could import vast quantities of foreign corn at little or no duty. Thus the price of corn was rising in England—the people were starving—and turned with execration against those into whose pockets the high prices were supposed to go, viz., the poor farmers; whereas those high prices really were all the while flowing silently but rapidly into the pockets of the aforesaid "rogues in grain"—the gamblers of the Corn Exchange!—Ministers effected their salutary alterations, by statute 5 and 6 Vict. c. 14, in the following manner:—They substituted for the former duties of 10s. 8d. per quarter, when the price of corn was 70s. per quarter, and 1s. when the price was 73s.; a duty of 4s. when the price of corn is 70s. per quarter, and made the duty fall gradually, shilling by shilling, with the rise of price, to 3s., 2s., and 1s. Thus are at one blow destroyed all the inducements formerly existing for corn-dealers to "hold" their foreign corn, in the hopes of forcing up the price of corn to starvation-point, viz., the low duty, every inducement being now given them to sell, and none to speculate. Another important provision for preventing fraudulent combinations to raise the price of corn, was that of greatly extending the averages, and placing them under regulations of salutary stringency.

So far, then, from evincing a disposition to trifle with, or surrender, the principle of the sliding-scale, the Government have, with infinite pains and skill, applied themselves to effect such improvements in it as will secure its permanency, and a better appreciation of its value by the country at large, with every additional year's experience of its admirable qualities. There is a perfect identity of principle, both working to the same good end, between the existing corn-law and the new tariff. Their combined effect is to oppose every barrier that human wisdom and foresight can devise, against dearth and famine in England: securing an abundant supply of corn and meat from abroad, whenever our own supply is deficient; but up to that point protecting our home producers, whose direct interest it will henceforth be to supply us at fair and moderate prices. It is the cunning policy of the heterogeneous opponents of the existing corn-laws, to speak of them as "doomed" by a sort of universal tacit consent; to familiarise the public with the notion that the recent remodeling of the system is to be regarded as constituting it into nothing more than a sort of transition-measure—a stepping-stone towards a great fundamental change, by the adoption of "a fixed duty," some say—"a total repeal," say the Anti-corn-law League. But those who think thus, must be shallow and short-sighted indeed, and have paid very little real attention to the subject, if they have failed to perceive in the existing system itself all the marks of completeness, solidity, and permanence; and, in the successful pains that have been taken to bring it to a higher degree of perfection than before, a determination to uphold it—a conviction that it will long continue the law of the land, and approved of as such by the vast majority of those who represent the wealth and intellect of the kingdom, and have the deepest stake in its well-being.

As for a total repeal of the corn-laws, no thinking man believes that there is the remotest prospect of such a thing; but many imagine that a fixed duty would be a great change for the better, and a safe sort of compromise between the two extreme parties. Can any thing be more fallacious? We hesitate not to express our opinion, that the idea of maintaining a fixed duty on corn is an utter absurdity, and that Lord John Russell and his friends know it to be so, and are guilty of political dishonesty in making such a proposal. They affect to be friends of the agricultural interest, and satisfied of the necessity for protection to that body; and yet they acknowledge that their "fixity" of duty is of precisely the same nature as the "finality" of the Reform bill, viz.—to last only till the first pressure shall call for an order in council. Does any one in his senses believe that any Minister could abide by a fixed duty with corn at the price of 70s., with a starving, and therefore an agitating and rebellious population? A fixed duty, under all times and circumstances, is a glaring impossibility; and, besides, is it not certain that the period for the issue of an order in council will be a grand object of speculation to the corn importer; and that he will hoard, and create distress, merely to force out that order? And the issuing of that order would depend entirely on the strength or the necessity of the Minister: on his "Squeezableness"—his anxiety for popularity. Does the experience of the last ten years justify the country in placing confidence, on such a point, in a Whig Ministry? In every point of view, the project of a fixed duty is exposed to insuperable objections. It is plain that on the very first instant of there being a pressure upon the "fixed duty," it must give way, and for ever. Once off, it is gone for ever; it can never be re-imposed. Again, what is to govern the amount at which it is to be fixed? Must it be the additional burden on land? or the price at which foreign countries, with their increased facilities of transport, and improved cultivation of their soil, would be able to deliver it in the British markets? What data have we, in either case, on which to decide? Let it, however, always be borne in mind, by those who are apt too easily to entertain the question as to either a fixed duty, or a total repeal of duty, that the advantages predicted by the respective advocates of those measures are mere assumptions. We have no experience by which to try the question. The doctrines of free trade are of very recent growth; the data on which its laws are founded are few, and also uncertain. And does any one out of Bedlam imagine, that any Minister of this country would consent to run such tremendous risks—to try such experiments upon an article of such immense importance to its well-being? Let us never lose sight of Lord Melbourne's memorable words:—"Whether the object be to have a fixed duty, or an alteration as to the ascending and descending scale, I see clearly and distinctly, that the object will not be carried without a most violent struggle—without causing much ill-blood, and a deep sense of grievance—without stirring society to its foundation, and leaving every sort of bitterness and animosity. I do not think the advantages to be gained by the change are worth the evils of the struggle."28