and accustomed level.
The increased supply of grain operating on the foreign market, will also
lower its price in the country to which it is exported, and will thereby
restrict the profits of the exporter to the lowest rate at which he can
afford to trade.

The ultimate effect then of a bounty on the exportation of corn, is not
to raise or to lower the price in the home market, but to lower the
price of corn to the foreign consumer--to the whole extent of the
bounty, if the price of corn had not before been lower in the foreign,
than in the home market--and in a less degree, if the price in the home
had been above the price in the foreign market.

A writer in the fifth vol. of the Edinburgh Review on the subject of a
bounty on the exportation of corn, has very clearly pointed out its
effects on the foreign and home demand. He has also justly remarked,
that it would not fail to give encouragement to agriculture in the
exporting country; but he appears to have imbibed the common error which
has misled Dr. Smith, and I believe most other writers on this subject.
He supposes, because the price of corn ultimately regulates wages, that
therefore it will regulate the price of all other commodities. He says
that the bounty, "by raising the profits of farming, will operate as an
encouragement to husbandry; by raising the price of corn to the
consumers at home, it will diminish for the time their power of
purchasing this necessary of life, and thus abridge their real wealth.
It is evident, however, that this last effect must be temporary: the
wages of the labouring consumers had been adjusted before by
competition, and the same principle will adjust them again to the same
rate, by raising the money price of labour, _and, through that, of other
commodities, to the money price of corn_. The bounty upon exportation,
therefore, will ultimately raise the money price of corn in the home
market; not directly, however, but through the medium of an extended
demand in the foreign market, and a consequent enhancement of the real
price at home: _and this rise of the money price, when it has once been
communicated to other commodities, will of course become fixed_."

If, however, I have succeeded in shewing that it is not the rise in the
money wages of labour which raises the price of commodities, but that
such rise always affects profits, it will follow that the prices of
commodities would not rise in consequence of a bounty.

But a tem