170 Of Corn- Laws. Bk. iii, 



the bounty, would have remained in the home 

 market to increase the consumption, and to lower 

 the price of that commodity.* 



In this observation he evidently misapplies the 

 term market. Because, by selling a commodity 

 lower, it is easy to get rid of a greater quantity 

 of it, in any particular market, than would have 

 gone off otherwise, it cannot justly be said that 

 by this process such a market is proportionally 

 extended. Though the removal of the two taxes 

 mentioned by Adam Smith as paid on account of 

 the bounty would certainly increase the power of 

 the lower classes to purchase, yet in each parti- 

 cular year the consumption must ultimately be 

 limited by the population, and the increase of 

 consumption from the removal of these taxes 

 would by no means be sufficient to give the same 

 encouragement to cultivation as the addition of 

 the foreign demand. If the price of British corn 

 in the home market rise in consequence of the 

 bounty, before the price of production is in- 

 creased, (and an immediate rise is distinctly ac- 

 knowledged by Adam Smith,) it is an unanswer- 

 able proof that the effectual demand for British 

 corn is extended by it ; and that the diminution 

 of demand at home, whatever it may be, is more 

 than counterbalanced by the extension of demand 

 abroad. 



Adam Smith goes on to say that the two taxes 

 paid by the people on account of the bounty, 



* Vol. ii. b. iv. c. 5. 



