Ch. xi. Bounties upon Expoiiation. 183 



bounties on general grounds, and their inapplica- 

 bility in cases which are not unfrequent, it must 

 be acknowledged that, while they are operative, 

 that is, while they produce an exportation which 

 would not otherwise have taken place, they un- 

 questionably encourage an increased growth of 

 corn in the countries in which they are established, 

 or maintain it at a point to which it would not 

 otherwise have attained. 



Under peculiar and favourable circumstances a 

 country might maintain a considerable surplus 

 growth for a great length of time, with an incon- 

 siderable increase of the growing price of corn ; 

 and perhaps little or no increase of the average 

 price, including years of scarcity.* If from any 

 period during the last century, when an average 

 excess of growth for exportation had been ob- 

 tained by the stimulus of a bounty, the foreign 

 demand for our corn had increased at the same 

 rate as the domestic demand, our surplus growth 

 might have become permanent. After the bounty 

 had ceased to stimulate to fresh exertions, its in- 

 fluence would by no means be lost. For some 

 years it would have given the British grower an 

 absolute advantage over the foreign grower. This 

 advantage would of course gradually diminish ; 

 because it is the nature of all effectual demand to 



* The average price is diflferent from the growing price. Years 

 of scarcity, which must occasionally occur, essentially affect the 

 average price ; and the growth of a surplus quantity of corn, 

 which tends to prevent scarcity, will tend to lower this average, 

 and make it approach nearer to the growing price. 



