Currency fallacies refuted, and paper money ... - University Library

PAPER MONEY VINDICATED. 43itmay be answered, that the natural price of corngives that starting point ; but to ascertain whatthis is, we must travel somewhat farther back,and trace the consequences ofthe national debtin its influence on the price of corn, from itscommencement in 1697." In 1688, Mr. Gregory King, a man famousfor his knowledge of matters of this kind, estimatedthe average price of wheat in years ofmoderate plenty, to be to the grower 3.y.Qd. thebushel, or 28f. the quarter. The grower'sprice I understand," says Dr. A. Smith, "to bethe same with what is sometimes called the contractprice, or the price at which a farmer contractsfor a certain number of years to deliver acertain quantity of corn to a dealer.As a contractof this kind saves the farmer the expenseand trouble of marketing,the contract price isgenerally lower than what is supposed to bethe average market price." * This, being theprice of middle wheat,requires the addition ofone-eighth, according to the allowance of Dr.Smith, in similar cases, to bring it up to thelevel of the best wheat.fthe priceIn Windsor market,therefore would be 31*. 6d., to whichif we add 2*. per quarter for thedifference betweenthe contract and market price, the naturalvalue of the best wheat will be 335. M.per quarter. This agrees with the estimate* Smith's Wealth, Vol. I. p. 321. f Vol. 1. p. 3)6.