Commercial Politics (1837-1856)
Part 7
It was from the combined influence of these various considerations—from diminished confidence in the necessity or advantage of protection; from the increasing difficulty of resisting the application to articles of food of those principles which had been gradually applied to so many other articles; from the result of the experiment made with regard to cattle and meat in 1842; from the evidences of rapidly increasing consumption; from the aggravation of every other difficulty in the maintenance of the Corn Laws by the fact of their suspension on the first real pressure—it was from the combined influence of such considerations that I came to the conclusion that the attempt to maintain those laws inviolate after their suspension would be impolitic, that the struggle for their maintenance would assume a new character, and that no advantage to be gained by success could counterbalance the consequences of failure, or even the evils attending protracted conflict.
Between the maintenance of the Corn Laws inviolate and a measure involving their ultimate repeal, I saw no middle course satisfactory or advantageous to any interest; I saw still less of satisfaction or advantage in indecision and irrational delay. I could not admit the incompetency of the present Parliament to deal with this as with every other question of public concern. There appeared to me, upon the whole, much less of public evil in the resolution finally to adjust the question of the Corn Laws than in any other that could be then adopted; and that being my deliberate conviction, I felt it to be my duty to incur the painful sacrifices which the acting upon that conviction must inevitably entail.
LORD J. RUSSELL QUICKENS THE PACE (1845).
=Source.=—_Memoirs by Sir R. Peel_, vol. ii., p. 175. (London: 1858.)
_To the Electors of the City of London._
GENTLEMEN,
The present state of the country in regard to its supply of food cannot be viewed without apprehension. Forethought and bold precaution may avert any serious evils—indecision and procrastination may produce a state of suffering which it is frightful to contemplate.
Three weeks ago it was generally expected that Parliament would be immediately called together. The announcement that Ministers were prepared at that time to advise the Crown to summon Parliament, and to propose on their first meeting a suspension of the import duties on corn, would have caused orders at once to be sent to various parts of Europe and America for the purchase and transmission of grain for the consumption of the United Kingdom. An Order in Council dispensing with the law was neither necessary nor desirable. No party in Parliament would have made itself responsible for the destruction of a measure so urgent and so beneficial.
The Queen’s Ministers have met and separated without affording us any promise of such seasonable relief.
It becomes us, therefore, the Queen’s subjects, to consider how we can best avert, or at all events mitigate, calamities of no ordinary magnitude.
Two evils require your consideration. One of these is the disease in the potatoes, affecting very seriously parts of England and Scotland, and committing fearful ravages in Ireland.
The extent of this evil has not yet been ascertained, and every week, indeed, tends either to reveal unexpected disease, or to abate in some districts the alarm previously entertained. But there is one misfortune peculiar to the failure in this particular crop. The effect of a bad corn-harvest is, in the first place, to diminish the supply in the market and to raise the price—hence diminished consumption, and the privation of incipient scarcity, by which the whole stock is more equally distributed over the year, and the ultimate pressure is greatly mitigated; but the fear of the breaking out of this unknown disease in the potatoes induces the holders to hurry into the market, and thus we have at one and the same time rapid consumption and impending deficiency—scarcity of the article and cheapness of price. The ultimate suffering must thereby be rendered far more severe than it otherwise would be. The evil to which I have adverted may be owing to an adverse season, to a mysterious disease in the potato, to want of science or of care in propagating the plant. In any of these cases, Government is no more subject to blame for the failure of the potato crop than it was entitled to credit for the plentiful corn-harvests which we have lately enjoyed.
Another evil, however, under which we are suffering, is the fruit of Ministerial counsel and Parliamentary law. It is the direct consequence of an Act of Parliament passed three years ago, on the recommendation of the present advisers of the Crown. By this law, grain of all kinds has been made subject to very high duties on importation. These duties are so contrived that the worse the quality of the corn, the higher is the duty; so that when good wheat rises to 70s. a quarter, the average price of all wheat is 57s. or 58s. and the duty 15s. or 14s. a quarter. Thus the corn barometer points to fair, while the ship is bending under a storm.
This defect was pointed out many years ago by writers on the Corn Laws, and was urged upon the attention of the House of Commons when the present Act was under consideration.
But I confess that on the general subject, my views have in the course of twenty years undergone a great alteration. I used to be of opinion that corn was an exception to the general rules of political economy; but observation and experience have convinced me that we ought to abstain from all interference with the supply of food. Neither a Government nor a Legislature can ever regulate the corn market with the beneficial effects which the entire freedom of sale and purchase are sure of themselves to produce....
Let us, then, unite to put an end to a system which has been proved to be the blight of commerce, the bane of agriculture, the source of bitter divisions among classes, the cause of penury, fever, mortality and crime among the people.
But if this end is to be achieved, it must be gained by the unequivocal expression of the public voice. It is not to be denied that many elections for cities and towns in 1841, and some in 1845, appear to favour the assertion that free-trade is not popular with the great mass of the community. The Government appear to be waiting for some excuse to give up the present Corn Law. Let the people by petition, by address, by remonstrance, afford them the excuse they seek. Let the Ministry propose such a revision of the taxes as in their opinion may render the public burdens more just and more equal; let them add any other provisions which caution and even scrupulous forbearance may suggest; but let the removal of restrictions on the admission of the main articles of food and clothing used by the mass of the people be required, in plain terms, as useful to all great interests, and indispensable to the progress of the nation.
J. RUSSELL. EDINBURGH, _November 22, 1845._
THE BOMBSHELL (1845).
=Source.=—_The Greville Memoirs_: 1837-1852, vol. ii., p. 309.
LONDON, _December 5_.—I came to town yesterday, and find public affairs in a state of the greatest interest and excitement. The whole town had been electrified in the morning by an article in the _Times_ announcing with an air of certainty and authority that the discussions and disputes in the Cabinet had terminated by a resolution to call Parliament together early in January and propose a total repeal of the Corn Laws, and that the Duke had not only consented, but was to bring forward the measure in the House of Lords.... There can be very little doubt that it was Aberdeen’s object that Delane should publish what he did, although he did not tell him to do so, and the reason is very obvious. Yesterday the American mail went off, and took with it the morning papers, and consequently this article in the _Times_. It was exactly what Aberdeen wanted. As Foreign Secretary, his most earnest desire is to get over the Oregon affair as well as he can, and he knows that nothing will have so great an effect in America, nothing tend so materially to the prevalence of pacific counsels, as an announcement that our Corn Laws are going to be repealed.
PEEL AND HIS COLLEAGUES (1845).
=Source.=—_Letters of Queen Victoria_: 1837-1861, vol. ii., p. 56. (London: 1907.)
_Memorandum by the Prince Albert._ OSBORNE, _December 7th, 1845_.
Yesterday, Sir Robert Peel arrived here, and explained the condition of affairs.... Sir Robert proposed, by opening the ports, a preparation for the abolition of the Corn Laws. His colleagues refused, and of the whole Cabinet only Lord Aberdeen, Sir James Graham, and Mr. Sidney Herbert voted with him. Sir Robert hoped that in time the opinions of others would change, and therefore postponed a final decision. In the meanwhile the agitation of the Anti-Corn-Law League began; in every town addresses were voted, meetings were held, the _Times_—barometer of public feeling—became violently Anti-Corn-Law, the meetings of the Cabinet roused attention, a general panic seized on the mass of the public....
When he (Sir Robert Peel) arrived here, he was visibly much moved....
On my observing that Sir Robert has a majority of one hundred in the House of Commons, and asking whether it was not possible for him to continue the Government, he said:
“The Duke of Buccleuch will carry half Scotland with him, and Lord Stanley, leading the Protectionists in the House of Lords, would lead to great and immediate defections even in Her Majesty’s household. The Duchess of Buccleuch, Lord Hardwicke, Lord Exeter, Lord Rivers, Lord Beverley, etc., would resign, and we should not be able to find successors; in the House of Commons I am sure I should be beat, the Tories, agriculturists, etc., in rage would turn round upon me and be joined by the Whigs and Radicals, who would say: ‘This is _our_ measure, and we will not allow you to carry it.’ It is better that I should go now, when _nobody has committed himself_ in the heat of party contest, when no factions have been formed, no imprudent declarations made.”
After we had examined what possibilities were open for the Crown, the conclusion was come to that Lord John was the only man who could be charged with forming a Cabinet. Lord Stanley, with the aristocracy as his base, would bring about an insurrection (or riots), and the ground on which one would have to fight would be this: to want to force the masses of the people, amid the great poverty, to pay for their bread a high price, in favour of the landlords.
It is a matter of the utmost importance not to place the House of Lords into direct antagonism with the Commons and with the masses of the people. Sir Robert says very correctly:
“I am afraid of other interests getting damaged in the struggle about the Corn Laws; already the system of promotion in the Army, the Game Laws, the Church, are getting attacked with the aid of the league.”
FREE TRADE (1846).
=Source.=—_Hansard_, Third Series, vol. lxxxiii., col. 276, June 27, 1846.
Sir R. PEEL: ... I fairly avow to you that in making this great reduction upon the import of articles, the produce and manufacture of foreign countries, I have no guarantee to give you that other countries will immediately follow our example. I give you that advantage in the argument. Wearied with our long and unavailing efforts to enter into satisfactory commercial treaties with other nations, we have resolved at length to consult our own interests, and not to punish those other countries for the wrong they do us in continuing their high duties upon the importation of our products and manufactures, by continuing high duties ourselves, encouraging unlawful trade. We have had no communication with any Foreign Government upon the subject of these reductions. We cannot promise that France will immediately make a corresponding reduction in her tariff. I cannot promise that Russia will prove her gratitude to us for our reduction of duty upon her tallow, by any diminution of her duties. You may, therefore, say, in opposition to the present plan, What is this superfluous liberality, that you are going to do away with all these duties, and yet you expect nothing in return? I may, perhaps, be told that many foreign countries, since the former relaxation of duties on our part—and that would be perfectly consistent with the fact—foreign countries which have benefited by our relaxations, have not followed our example; nay, have not only not followed our example, but have actually applied to the importation of British goods higher rates of duties than formerly. I quite admit it. I give you all the benefit of that argument. I rely upon that fact, as conclusive proof of the policy we are pursuing. It is a fact, that other countries have not followed our example, and have levied higher duties in some cases upon our goods. But what has been the result upon the amount of your exports? You have defied the regulations of these countries. Your export trade is greatly increased. Now why is that so? Partly because of your acting without wishing to avail yourselves of their assistance; partly because of the smuggler, not engaged by you, in so many continental countries, whom the strict regulations and the triple duties, which are to prevent any ingress of foreign goods, have raised up; and partly, perhaps, because these very precautions against the ingress of your commodities are a burden, and the taxation increasing the cost of production disqualify the foreigner from competing with you. But your exports, whatever be the tariffs of other countries, or however apparent the ingratitude with which they have treated you—your export trade has been constantly increasing. By the remission of your duties upon raw materials—by inciting your skill and industry—by competition with foreign goods, you have defied your competitors in foreign markets, and you have even been enabled to exclude them. Notwithstanding their hostile tariffs, the declared value of British exports has increased above £10,000,000 during the period which has elapsed since the relaxation of the duties on your part. I say, therefore, to you that these hostile tariffs, so far from being an objection to continuing your policy, are an argument in its favour. But, depend upon it, your example will ultimately prevail.... I do hope that the friends and lovers of peace between nations will derive material strength from the example which I have advised, by remitting the impediments to commercial intercourse. But observe, if that be the effect, I think in all probability that the continuance of permanent peace will expose us to more extensive and more formidable competition with foreign countries with respect to manufactures. During war we commanded the supply of nations. Peace has introduced not only new consumers, but also formidable manufacturing interests. In order that we may retain our pre-eminence it is of the greatest importance that we neglect no opportunity of securing to ourselves those advantages by which that pre-eminence can be alone secured. Sir, I firmly believe that abundance and cheapness of provisions is one of the constituents by which the continuance of manufacturing and commercial pre-eminence may be maintained. You may say the object of these observations is to flatter the love of gain, and administer merely to the desire of accumulating money. I advise this measure on no such ground. I believe that the accumulation of wealth, that is, the increase of capital, is a main element, or at least one of the chief means by which we can retain the eminence we have so long possessed. But I have attempted to show that abundance of provisions, and security (which is the main thing) for continued abundance, not only contributes to the accumulation of wealth, but that it is directly conducive to the alleviation of public burdens, by increasing the revenue; to the alleviation of local burdens, by diminishing crimes; but, above all, that it is conducive to the spread of morality, by diminishing those temptations to crime which arise from distress and poverty.... I cannot appeal to any ungenerous feeling—I cannot appeal to fear, or to anything which will be calculated to exercise an undue sway over the reason of those to whom these proposals are made. There may be agitation, but it is not one which has reached the great mass of the labouring classes, there being among them a total absence of all excitement. But this I do say—there has been a great change in the opinions of the great mass of the community with respect to the Corn Laws. There is between the master manufacturers and the operative classes a common conviction that did not prevail at 1842 or at a former period—that it will be for the public advantage that these laws should be repealed; and while there is that union of sentiment between them, there appears at the same time to be a general contentment and loyalty, and a confidence in your justice and impartiality.
Sir HOWARD DOUGLAS (member for Liverpool): ... This establishes, I think, the truth of what I had the honour of saying in this House on a former occasion: that there is a great difference between that plenty and low price which are produced by abundance of home production, and that which is produced by unlimited foreign importation; that the one quickens, the other deadens the home market; that England is England’s best customer; and that the contemporaneous exportation from England in return for foreign corn would be chiefly in British gold. Perfect free trade consists in the absence of restrictions on both sides.... We cannot combat rival tariffs, directly or indirectly, without subjecting British industry to severe depressions in relation to foreign industry and foreign labour.... To lay suitable duties upon the production of the foreigner, who lays burthens upon yours, does not give the monopoly of the home market to the home producer, nor turn towards any particular employment more capital and labour than would naturally go there. It only hinders that amount of those actually engaged from being turned away into a less natural direction. There cannot be two prices for the same article in the same market. The foreign consumer will not pay more for a British than for a domestic article of equal quality. The exporter cannot pay the rival duty, for, if so, he would sell at a loss or be undersold by the foreign rival: and therefore to compete with foreign protected markets British articles must be produced so much cheaper as to enter into this competition. The cost of production must therefore be reduced. This is most immediately and readily done by reducing the wages of labour, and it is most important to remark that it is precisely in times of pressure, when profits are most bare and labour most in want of employment, that this takes place and that mechanical labour is most extended. This not only displaces manual labour in times of pressure, but by so much precludes it from participating in future prosperity. It is difficult to trace the various uses of the money produced by the bills drawn on Great Britain by the exporters of foreign productions, for which they will not take British produce in return.... Whatever be the end of the circuitous transactions, the money payments made by us must first afford profitable investments to the rival interests of foreign nations and employment of foreign labour.... The noble lord, the member for the West Riding, observed forcibly, the increase of population requires additional means and sources of subsistence. But can we not find, do we not possess in our Colonies unbounded sources, rich fields of virgin fertility, from which we may derive unlimited supplies of British food? ... I have imagined that it might really be possible to treat the Colonies like counties of the country, not only in direct trade with the United Kingdom, but in commercial intercourse with each other, by free trade among ourselves, under a reasonable, moderate degree of protection from without, and so resolve the United Kingdom and all her Colonies and possessions into a commercial union such as might defy all rivalry and defeat all combinations. But free trade—the extinction of the protective principle, the repeal of the differential duties—would at once convert all our Colonies, in a commercial sense, into as many independent states. I defy any hon. member opposite to say that this would not be a virtual dissolution of the Colonial system. The British flag might still fly for a time, where sound British policy had raised it, in every part of the world. The colonists would regard it still with the veneration to which it is entitled. Our navies might still guard their coasts and waters and our troops hold military possession of their lands; but then would come the question of the economists, in debates on the Navy, Army, and Ordnance Estimates, What is the use of colonies? They consume not, as of old, the productions of the United Kingdom in any greater degree than if they were foreign States; we no longer consider and treat the colonies as domestic sources essential for the supply of the materials of our manufacturing industry and the elements of our maritime power; and it will be difficult to answer that economical argument, when, moreover, we shall have discarded our Colonies, for considerations of a wretched pecuniary economy, and sacrificed national objects and high destinies to the minor, and the comparatively mean, calculations of speculative wealth.
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