5 JANUARY 1839, Page 17

EFFECTS OF COEN-LAW REPEAL ON THE VALUE OF MONEY. .

• TO THE rDrf Olt or THE SPECTATOR. •

Temple, 27th December 1838. Srn—Much disquisition has °flute taken place on the subject of theCorn- laws : but as the view which I take of these laws and their effects hus not (to my knowletig,e) been enforced, perhaps I may be permitted to state my ideas ; and in doing so 1 hope 1 shell not he " niidtiplyiiig %vents without wisdom." 7171te Corn-laws have tended to keep the price of eorit high in this country : their repeal would speedily, probably suddenly, reduce the value of that article to the price at which it might then be imported. In fact, the price of corn would be aimost equalized here and abroad. Now, what would be the effect of this equalization of prices It would not, I think, lav waste (as stone contend) the whole arable land of England ; -neither ivotiltt it extinguish or even diminish the rents of loodlords, although it might throw out of colt ow the most stubborn parts of our soil. Its chief

operation woultl be to alter the relative value of money and property. This, suppose the price of corn to he reduced one-third, immediately thereupon the

wages of labour (which are regulated by the price of corn) would undergo a ,Correspotaling dhnin ution. But if the price of labour should he reduced, the produce of labour must beeome cheaper : wherefore, all our products—meat, clothing, luxuries, every thing in short—would be of less value ; or in other words, the valise of money would be increased, the sante quantity of goods could lie bought for one-third less amount of monev. The fertile- soil of the farmer would not lie waste ; because, by the reduced rate of wavs and the increased value of money, his profits, though less in ac- tual cash,'Would he the same as now : he would then be able to realize only 40/. where he now gets 60/., bat the 401. would then purchase for him the same amount of goods as the 60/. can now. indeed, it seems obvious that the thriller of a fertile soil in England need not fear f weign competitioi c. provided the price of labour in both countries Ice equal, and the taxes of the one oot greater than the expense of exportation to the other. In like manner, although the landlord's rent would fall in amount, it would remain the same in value. In short, it seems to me that the equalization of the price of corn in all coun- tries would equalize the value of too ocy also. Doubtless, the increased volute of money, or (what is the saute thing) the decreased price of goods, would enable this netnufletitrer to compete cc tic forei;:m countries better than at present. But the nowt important consideration of all remains to be stated : what would bc the effect of a repeal uf these lams on the debtors ? All debts and obligations would be enlarged in burden one-third, if they should be suffered to remain the same in amount after the incl., ear in the value of money. Er. gr. I have a mortgage of :1,000/. at 4 per cent. per annual on A's lait11, which land now yields a clear profit of 180/. per annum. On the repeal of the .Corn-laws, A's land will produce only 1•20/. per annum ; but this 120/. is of the ,am,, value as ISM was theretcfm..:. It is evident that if my mortgage should c••main the seme icc tunottnt, swallowing up the whole profit of A's laud, I should be enriched at the expense of A : because A did not borrow of me the specific article money, but the representative of the produce of labour ; and 2,000/. wilt represent as much of that produce after the repeal as 3,000/, did before it, when A borrowed the money. So also with regard to the National Debt and its interest : if it should be suffered to remain the sante iii amount, its burden would be increased to the :enormous extent of one-third in addition. This is the position which appears to me to tie always overlooked. But it is plain that a great injury would be wrought on the country at lame, and on individuals in particular, mid cc great and unmerited boon conferred bon other individuals, it' the Corn-laws should be repealed without a simultaneous tedtte- lion in the amount of all existing debts, rents, and obligations, including the National Debt, throughout the kingdom.