The fall of prices in 1820-1-2 had fully demonstrated the futility of the corn-law of 1815, and it was therefore proposed to modify it.
1822 to 1828.
The corn•law of 1815 was suspended by a new act passed in July, 1822, which enacted that, " as soon as foreign wheat shall have been admitted for home con sumption under the provisions of the Act of 55 Geo. III. c. 26 [the corn-law of 1815], the scale of prices at which the home consumption of foreign corn, meal, or flour is permitted by the said Act shall cease and determine." The new scale was as follows :—Wheat at or above 70s., duty 128. ; and for the first three months of the ports being open an additional duty of 5s. per quarter, being a duty of 17s. Above 70s., and under 808., the "first low duty" of 58., with the addition of 5s. for the first three months ; above 80s. and un der 858., the second low duty" of Is. was alone to be charged. This act never came into operation. It is justly described as being merely a pretended relaxation of the act of 1815; for, though the limit of total prohibition was lowered from 80s. to 70s., yet the duty would have rendered it more severe than the measure for which it was substituted as an improve ment. In 1826, in consequence of the unfavourable harvest, a temporary act was passed, under which a quantity of foreign grain was admitted for home con sumption. In 1827 the Government was driven to a still more decisive step. In the spring of the year ministers had stated that• it was not their intention to liberate the corn then in bond, upon which prices immediately rose. This was followed by some disturbances in the manufacturing districts, to allay which the Government, on the 1st of May, proposed to Parlia ment to release the bonded corn, and, as a measure of precaution, required to be invested with powers to admit during the recess of Parliament an additional quan tity, not exceeding 500,000 quarters, in case the harvest proved deficient. These powers were acted upon, and on Septem ber 1 an Order hi Council was issued, ad mitting certain descriptions of grain for home consumption, until forty days after the next meeting of Parliament, at an almost nominal rate of duty, on the ground that," if the importation for home consumption of oats and oatmeal, and of rye, peas, and beans, be not immediately permitted, there is great cause to fear that much distress may ensue to all classes of his Majesty's subjects." In the
ensuing session of Parliament ministers obtained an act of indemnity for this order.
In 1827 it had become sufficiently evi dent that some other system must be de vised, and Mr. Canning introduced cer tain resolutions in the House of Commons, the leading principle of which was to per mit importation at all times by substitut ing a graduated scale of duties. A bill was brought in, founded on these resolu tions, fixing a duty of Is. on foreign wheat when the average price was 70s. per quarter. In respect to colonial wheat, the duty was fixed at 6d. when the ave rages were 65s. per quarter, and when under that sum at 5s. per quarter. The bill was not carried, as the Duke of Wel lington moved and carried a clause the effect of which would have been to keep the ports entirely shut so long as the price of wheat was under 66s. the quarter. An act was, however, passed during this session to permit corn, meal, &c., ware housed on the 1st of July, 1827, to be entered for home consumption upon pay ment of duties according to a fluctuating scale. About 572,000 quarters of wheat and flour were entered for consumption under this act, at a duty averaging above 20s. per quarter. The harvest had not been defective, and this was the very reason why the corn in bond was released notwithstanding the high duty, as there was no prospect of prices advancing.
In 1821 a new act was passed relative to the averages. Instead of "the mari time districts," 148 towns were named, for which the magistrates were to appoint inspectors to make a return of the weekly purchases.
The six weeks' averages still regulated the amount of duty on importation, but they were greatly improved by being every week subject to an alteration. Each week the receiver of corn returns struck out one week's averages, admitting those last received, and thereby affecting the aggregate average, as prices rose or fell from week to week. The introduction of a fluctuating scale of duty was an im portant step, and its effect will be consi dered in the next period.