corn is
its high comparative real price, or the greater quantity of capital and
labour which must be employed to produce it: and that the reason why the
real price of corn is higher and continually rising in countries which
are already rich, and still advancing in prosperity and population, is
to be found in the necessity of resorting constantly to poorer land--to
machines which require a greater expenditure to work them--and which
consequently occasion each fresh addition to the raw produce of the
country to be purchased at a greater cost--in short, it is to be found
in the important truth that corn, in a progressive country, is sold at
the price necessary to yield the actual supply; and that, as this supply
becomes more and more difficult, the price rises in proportion. [14]

The price of corn, as determined by these causes, will of course
be greatly modified by other circumstances; by direct and indirect
taxation; by improvements in the modes of cultivation; by the saving
of labour on the land; and particularly by the importations of foreign
corn. The latter cause, indeed, may do away, in a considerable degree,
the usual effects of great wealth on the price of corn; and this wealth
will then show itself in a different form.

Let us suppose seven or eight large countries not very distant from each
other, and not very differently situated with regard to the mines.
Let us suppose further, that neither their soils nor their skill in
agriculture are essentially unlike; that their currencies are in a
natural state; their taxes nothing; and that every trade is free,
except the trade in corn. Let us now suppose one of them very greatly
to increase in capital and manufacturing skill above the rest, and to
become in consequence much more rich and populous. I should say, that
this great comparative increase of riches could not possibly take place,
without a great comparative advance in the price of raw produce; and
that such advance of price would, under the circumstances supposed, be
the natural sign and absolutely necessary consequence, of the increased
wealth and population of the country in question.

Let us now suppose the same countries to have the most perfect freedom
of intercourse in corn, and the expenses of freight, etc. to be quite
inconsiderable. And let us still suppose one of them to increase very
greatly above the rest, in manufacturing capital and skill, in wealth
and population. I should then say, that as th