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Chapter 18 of 28 · The Turgot Collection: Writings, Speeches, and Letters of Anne Robert Jacques Turgot, Baron de Laune by A.R.J. Turgot

Which Repeals Certain Rules Concerning Grain Products

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Which Repeals Certain Rules Concerning Which the Letters-Patent of November 2, 1774, had Treated, Suppressing All Taxes Established in Paris on Wheat, Méteils, Rye, Flour, Peas, Beans, Lentils and Rice, and Moderating Those on Other Grain Products

Louis, etc., One of the first duties we felt we owed to the felicity of our peoples was to assure their daily subsistence by recalling, by the decree of our Council of September 13, 1774, and the letters-patent expediting the same of November 2 following, to its true principles legislation concerning the trade in grain. We desire that these principles be exposed clearly and in detail, in order to make known to our people that the surest means of procuring abundance is to maintain free circulation, so that the commodities may pass from places of abundance and supply to those of want and demand; to protect and to encourage the trade so that the doors will more surely be open to the places where there is the greatest consumption and a more certain market.

We have had the satisfaction of seeing the measures we have taken justified by experience, even in the midst of popular prejudice, of the inquietudes and annoyances arising from these prejudices, and of devastations committed by an ignorant or deluded populace. After an unusually poor harvest, the inadequacy of which was attested by the amount of new grain which provisioned the markets, even before the following harvest was garnered, and despite the disarrangement and cessation of trade which the renewal of old rules that are contrary to liberty wrought in the speculations of dealers, and the interruption of the trade in grain which resulted from these regulations during many years, the commodity, nevertheless, was not lacking; the afflicted provinces were relieved by the resources of those which were better supplied; a considerable quantity of grain was imported into the realm; and the price, though higher than we could have desired, was not so excessive, however, as we have often seen it under the prohibitive regime, even in years when the harvest was generally much better than that of the year 1774.

At least, a better harvest restored abundance. We may not hasten too quickly to turn to advantage these days of tranquility and complete the removal of all obstacles which may yet retard the activity and progress of commerce, in order that, if crop failure afflicts our provinces anew, our people may find resources prepared in advance against famine, and that they may not be exposed longer to the excessive variations in the value of grains which destroy all semblance of proportion between the level of wages and the cost of subsistence.

Great cities, and especially capitals, naturally attract abundance by the wealth and number of consumers. Our good city of Paris seems in particular to be destined to become the entrepôt of a most extensive trade.

The rivers Seine, Yonne, Marne, Oise and Loire, by the canals of Briare and Orleans, establish ready communication between this city and the most fertile provinces of our kingdom; they offer a natural passage by means of which the wealth of all the provinces should circulate freely and be distributed among them; the vast extent of the consumption of Paris includes necessarily a great part of commodities of all kinds, if nothing arrests them in their course; it would even have at its disposal all the commodities which a free commerce would be impelled to secure for it and turn into it from all contiguous provinces.

Nevertheless, we admit with regret that the provisionment with grain of our said city, far from being abundant and ready as it would be in a state of free circulation, has been for many centuries an object of sore care for the government and of solicitude for the police, and that these attentions have tended only to repress the commerce entirely.

In giving our letters-patent of November 2, 1774, we proposed to ourselves to seek out, by the most rigid examination of the separate police regulations of our said city of Paris, the causes which set themselves in opposition to the facility of its provisionment, as we announced by article 5 of the said letters-patent our intention to ordain concerning those rules by a new law.

We have had before us accordingly the ordinances, decrees and regulations of police pertaining to the trade in grain and the provisionment of Paris.

We discover that in calamitous times of trouble and civil war, in the centuries when commerce had no existence, and its principles could not be known, the kings, our predecessors, Charles VI, Charles IX, and Henry III, promulgated some ordinances covering that matter; that, without the concurrence of royal authority, many police rules have been added to form a body of legislation equivalent to a prohibition of bringing grain into Paris; that custom and precedent have maintained it, and sometimes confirmed it; that, even when government began to bring to bear on that object a more enlightened attention, vigorous claims were made for the conservation of that police; that it has been preserved as if it had been the safeguard of the facility of subsistence.

That officials, created at different times in connection with the market and port, were charged with the oversight of its execution, and were nevertheless authorized to collect taxes which further injured the sale of grain.

That, finally, for some few years, a tax has been laid on that trade for the construction of a market and warehouse.

Thus, in combining the different effects of the police designed to assure the necessities of life in Paris, it results that not only do the taxes of various nature increase the price of grain and flour, but that these regulations prevent their abundance, and that all parts of this legislation are so mutually contradictory and so opposed to their object, that the one indispensable thing required to reform them is to expose, by the simplest statement, these regulations and their effects.

An ordinance of February, 1415, renewed by a decree of August 19, 1661, forbids any one to store or to remove the sacks of grain or flour arriving by land, to unload, to store in granaries or magasins, or even under awnings, the same commodities arriving by water; as a result, according to these regulations, they have to remain exposed to the atmosphere, to the rain and the damp, which destroys them. The same decree of 1661 forbids accumulating any store of grain, and allowing it to be stopped in the places where purchased, or at the ports of lading, or on the roads by which it should arrive.

These combined restrictions prevent Paris from having any means of keeping a supply of grain and flour within its borders or of having any supply in its environs.

The same ordinance of 1415 imposes on the merchants who bring grain to Paris the obligation to sell before the third market day, on penalty of being compelled to sell at the lower price of the preceding markets; and the decree of August 19, 1661, and the Ordinance of Police of March 31, 1635, after having taken away from all merchants the privilege of making any purchase in Paris, forbid in like manner all bakers from purchasing more than two hogsheads of wheat at a single bargain.

Thus the same police, by its contradictory dispositions, forces the sale and forbids the purchase.

By conforming strictly to that police, the capital could never have provision for more than eleven days’ consumption; for the interval between three markets is only eleven days, and, on one hand, the merchants, assured of not having free disposition of their commodity after that interval, and of being forced, perhaps, to sell at a loss, would bring into Paris only the grain necessary for eleven days’ subsistence; while on the other hand, the city could have no provisions in its private dépôts, since they are prohibited there; nor even in the bake-shops, since they are forbidden to buy more than two hogsheads of grain.

If that police be observed, every time that high or low water, or ice and snow interrupted navigation or land travel for more than eleven days, the inhabitants of Paris would wholly lack subsistence in the most fruitful years, and in the midst of the abundance which the rest of the kingdom enjoys.

A decree of Parlement on August 23, 1565, forbade grain merchants, on penalty of corporal punishment, to export from the city, either by land or by water, going either up or down the river, the grain they had brought into it; two ordinances of police, of 1622 and 1632, added to the rigor of that decree by forbidding the purchase and the removal of any grain for a greater distance than ten leagues from Paris, on penalty of confiscation and arbitrary fine.

These dispositions tend to banish trade in grain from the city of Paris, where the négociant is deprived of liberty and almost of the property right in his commodity, and especially of the allurement, so essential to trade, of being able to take it where there is hope of receiving profit; that police informs him that he can neither enter the city nor pass within the arrondissement of ten leagues, and that space becomes an insurmountable point of separation between all the provinces which might have profited by the advantages of navigation, for their mutual succor; in this way Bourgogne and Champagne, having an over-supply of grain, cannot relieve Normandy afflicted by famine, for the sole reason that the Seine traverses Paris and its arrondissement: in the same way scarcely any relief could be brought from Normandy to Paris and beyond, by ascending the Seine, until, by our edict of June, 1775, suppressing the offices of privileged merchants and carriers of grain, and abolishing the right of banalité of the city of Rouen, we removed the obstacles which intercepted the grain trade in that city.

The police ordinance of 1635, cited above, and confirmed by an edict of 1772, forbade merchants who had begun the sale of a cargo of wheat to increase the price; and by an obvious injustice, the merchant subject to hasards which might have diminished the price at the commencement of his sale could not profit by those which, before the end of that sale, might have made the price more advantageous.

The same rules enjoin further, that all traders who bring grain to Paris shall conduct the sale there in person or by some member of the family, and not by brokers (facteurs); it ignored the fact that the laborer can not then abandon the tasks of cultivation, or the trader the care of his business, to follow a part of his merchandise; that neither of them can leave without expense; and that these expenses, having to be defrayed out of their trade, would uselessly augment the price of grains.

The prohibition laid on wagoners (voituriers), by the edict of 1661, from selling grain along the road, and even from untying the sacks, on penalty of confiscation, is without object in regard to the trade, which should not be throttled by being bound up with such details; it is inhuman toward those of our subjects who may happen to have immediate and pressing needs; it is still more inconvenient and repulsive to the dealer whom it exposes to anxiety and to unjust punishment, perhaps, if some accident obliges him to touch the sacks of grain which he is conveying.

Finally, the obligation imposed by the same decree of 1661 on those who carry on the grain trade for Paris, to submit their invoices to notaries, to present them to the officials of grain, and to register them in a public record, is a formality contrary to all the customs and interests of commerce, which demands above all else good faith, secrecy and celerity of transaction; and that law has no other object than to occasion expenses which increase the cost of sales.

It is by such rules that it was deemed most fit in other times, and almost to our day, to provide the subsistence of our good city of Paris. The négociants, whose function is that of necessary agents of circulation and who carry abundance unfailingly wherever they find liberty, security and markets, have been treated as enemies who must be harassed on the way and loaded with chains when they arrive; the grain they bring to the city cannot be taken out: but they can neither keep it nor protect it from the ravages of climate and corruption; they are forced to hasty sales; they are stopped from making purchases; the merchant must sell his grain by the third market day or lose control of it; the purchaser can provide for his wants only slowly and in small quantities. Diminution in prices brings a loss to the trader; their increase can profit him nothing; the grain merchants, dismayed by the rigors of the police, are moreover exposed to public hatred; the trade is oppressed, slandered on all sides, and driven from the city; a district twenty leagues in diameter divides the provinces of greatest abundance from each other and from our city; and yet all precautions were forbidden in the interior of the city and the outskirts; they seem even to have conspired against future harvests, by requiring that the laborer quit his work to follow his grain and sell it himself.

That disastrous police produced in former times the effects which might be expected; periods of excessive and protracted scarcity rapidly succeeded years of abundance; these were prolonged without actual famine; they led to violent and dangerous remedies, which only prolonged them because commerce, destroyed by these rules, could offer no help.

Such at least are the effects which our city of Paris experienced in 1660, 1661, 1662, 1663; in the years 1692, 1693, 1694; in the years 1698 and 1699; then in the year 1709, and later in the years 1740 and 1741, sad times when the price of grain, though moderate in the provinces, was nevertheless excessive in Paris; when the excess of price was determined, not by the effective quantities of goods, but by the greed of a small number of merchants to whom the sale of grain was granted, under a regime which permitted neither trade, nor circulation, nor competition. Only the disregard of these exasperating restrictions, based on the laws of necessity, has been able to make less uncertain the provisionment of our good city of Paris; they were a ceaseless menace of famine and high prices; it was necessary to tolerate resources against frost and floods; to have magasins in the district of ten leagues, and even in the interior; to permit the merchants to preserve their grain against climatic conditions, to allow them time to make their sales, and the privilege of employing agents: it is only by the non-execution of the laws that Paris has been able to provide its subsistence.

But the non-execution of such laws is not sufficient to reassure the trade, which their existence continually menaces; it has not recovered its functions; the government, being unable to rely on it, believes it necessary to proceed by itself to secure the provisionment of the capital. It has found that that precaution, reputed necessary, involves the greatest possible inconvenience; that the commerce conducted under its orders admits neither the extent and celerity, nor the economy of the ordinary commerce; that its authorized agents, in all the markets where they appear, bring alarm and sudden rise in prices; that they by reason of their very functions commit many abuses; that operations of that kind completing the discouragement and absolute ruin of ordinary trade, enormously increase the expenses, and by consequence the burdens of our subjects who supply the funds; and finally, that they do not accomplish their object.

It is especially in recent times that the multiplied inconveniences of the laws have been conspicuously apparent. The declaration of May 25, 1763, seemed to open the way to agricultural prosperity and facility of subsistence, by ordaining that the circulation of grain should be entirely free in all parts of the kingdom; but a multitude of particular and local obstacles thwarted the general intent of the law and embarrassed all communication; they were not yet recalled or removed.

The edict of July, 1764, was in force for only a very short time, when its provisions were changed: that legislation, yet incomplete, needed careful attention; and yet the poor harvests caused every proposed innovation to be regarded with timidity, until the decree of the Council of December 23, 1770, and the letters-patent of September 16, 1771, recalling the prohibitive régime of past centuries, refastened the shackles from which the grain trade was barely disentangled, and surcharged it with numerous and complex formalities which made it impossible.

At that time the inequality of harvests ceased to be the measure of the value of grains; their true price existed nowhere; they were given an excessive value in some places, and moderate and even low valuation in places immediately contiguous. Wheat and rye were lacking in our most frequented ports, and they could be brought from other ports where abundance reigned, only when directed by the Admiralty office. The appearance of some local famine, always at hand, burdens the government with solicitude, with excessive expenses and with compulsory operations which give the people much disquiet and too little real relief; and in the spaces of time when many successive harvests have been sufficiently good, the general price of grain has been higher than in 1775, after the poor harvest of 1774.

The examination of these facts, which are well known to the public, convinces us that only a commerce emancipated from all annoyance and all fear will suffice for all needs, prevent the inequalities in price and the sudden and startling variations which so often come without any actual cause; that it alone, in case of misfortune, will be able to remedy the actual famines in a way that all government expenditures can never succeed in doing.

Determined to give, on all occasions, proofs to our people of our love for them, and to make what sacrifices their welfare and the facility of their subsistence may demand of us, we will to choose in preference and to make known to them those things of which the utility is most certain and most direct; we purpose to establish abundance within their walls, by repealing the rules which banish it, by freeing grain from the taxes which increase the price and which vex the trade; finally, by delivering it from the troublesome functions of certain offices created to oversee the execution of these rules, and which it is in our mind to suppress, along with other offices of the same kind, by our edict of this month.

We are determined to exempt from all taxes and to grant the enjoyment of absolute immunity to wheat, méteils,1 rye, flour, peas, beans, lentils and rice, destined for consumption by the people of our said city; but, while exercising our beneficence in the present extinction of taxes, we would not forget that it is in our justice to provide for indemnities due by reason of the suppressions which we purpose to ordain.

One part of the duties which are collected on grain has been conceded to the prévôt of merchants and aldermen of our good city of Paris, by the declaration of November 25, 1762, for the establishment of a new market and warehouse. The revenue is assigned to the payment of present charges, the acquittal of which will be provided for by us until January 1, 1783, at which time the payment of the claim for market and warehouse should cease, by the terms of the same declaration.

Another part of the same taxes was devoted to the offices of measurers and carriers of grain, established in connection with the market and ports by the edict of the month of June, 1730, and which are included in the general suppression ordained by our edict of this month.

The order effectually to establish the indemnities assured to these offices by our edict requires that we reserve, to be collected to our profit, a part of the taxes, attributed to the same offices, on oats, grain and grain products other than wheat, méteils, rye, flour, peas, beans, lentils and rice, and less useful to the subsistence of our people than the kinds we specifically emancipate.

We will, however, to distinguish and to abolish only that portion of the taxes which represents the wages of porters actually employed in the service of the markets; we will continue to collect that part reserved to the officials, as an interest in their finance.

We have no doubt that commerce delivered from all encumbrances and encouraged by our laws will provide for all the needs of our good city of Paris. Therefore a constant abundance and just prices for the necessities of life ought to be the consequence and effect of the reform of a vexatious police, of the protection we accord to trade, of the freedom of communication, and finally, of the absolute immunity from all taxes which increase the price; and the good we shall accomplish for our subjects will be the most grateful recompense for the pains we take in their behalf. For these causes, etc.

Article I. We will that it may be free to all persons, of whatever quality and condition they may be, to bring in and to hold in storage or magasin, both in our good city of Paris and in the circumscribing district of ten leagues and elsewhere, grain and flour, and to sell them in such places as shall seem good to them, even away from boats and markets.

Article II. It shall be likewise free to all persons, even to bakers of our good city of Paris, to buy grain and flour at all hours, in such quantities and in such places, both within the said city and elsewhere, as they judge fit.

Article III. Those who have grain and flour, whether in the markets and ports, or in granaries or magasins in the said city of Paris, shall not be constrained to sell them at the third market day, or at any other fixed time.

Article IV. Those who have grain to sell in our said city may also increase as well as lower the price, in conformity with the course of trade, without being compelled, under the pretext of uncovering a pile or cargo of grain, and commencing the sale from one or both, to continue the sale at the same price.

Article V. It shall be equally free to all those who have grain or flour in the said city of Paris to sell them in person or by brokers or agents.

Article VI. Those who carry on trade in grain in our city of Paris, or for it, may not be in any case constrained to submit any declarations, bills of lading or invoices before notaries, or to record them in any public record.

Article VII. It shall be free to all persons to remove, both from the city of Paris and from its circumscribing district of ten leagues, the grain and flour they may have brought in, or which they may have purchased therein, without needing, for that end, any permission.

Article VIII. We have abolished and suppressed, do abolish and suppress the taxes on wheat, méteils, rye, flour, peas, beans, lentils and rice, which we have included in the suppression ordained, by our edict of the present month, of different offices created in connection with the ports and markets; all of which taxes on the commodities most necessary to life, we do give and restore to the inhabitants of our good city of Paris. We forbid, under severe penalty, all persons, under pretext of the same, to make any such collection, beginning from the day of publication of our present declaration.

Article IX. We have in like manner abolished and suppressed, do abolish and suppress the tax for market and warehouse levied on wheat, méteils, rye, flour, peas, beans, lentils and rice, together with the 8 sous per livre assessed on account of the same tax; and, in consequence of the provisions enacted by the present article and by the preceding article, the said grain and flour are exempt from all taxes whatsoever in our good city of Paris. We will, furthermore, that the collection of the said tax for market and warehouse, on all other commodities and merchandises which are subject to it, and which are not specifically freed by our present declaration, shall continue to be made for the benefit of the prévôt of merchants and aldermen of our good city of Paris, until January 1, 1783, when the said collection should cease, in accordance with the letters-patent of November 25, 1762, by which it was established.

Article X. We have reserved and do reserve (as is herein set forth), to be collected to our profit, the taxes attributed to the offices of measurers and carriers of grain, levied on oats, malt, grains and grain products other than wheat, méteils, rye, peas, beans, lentils and rice. We will that the said collection be made at the barriers by the agents and clerks of the Farmer General of our taxes, who shall be held to strict account, in conformity with the provisions of article III of the edict of the present month, enacting the suppression of guilds of officials to whom the taxes have been assigned.

Article XI. We ordain that, under the taxes reserved and designated by the preceding article, a separation be made of that part answering to the wages of labor, which the said officials may have received in connection with the grain in the markets and ports; and that from the day of publication of our present declaration, the said portion shall cease to be collected; and the other part of the same taxes, which we have intended to reserve, shall be collected on the basis of, and in conformity with, the tariff attached under the counter-seal of our present declaration.

Article XII. Provision will be made by us for the indemnity due the said prévôt of merchants and aldermen of our good city of Paris, by reason of the extinction ordained, by article IX herein, of the market and warehouse tax on grain and flour announced in the said article, and from funds which shall be designated by us for that purpose.

Article XIII. Furthermore, our letters-patent, given concerning the commerce in grain on November 2, 1744, shall be executed for our good city of Paris, and for the circumscribing arrondissement of ten leagues. We annul all ordinances, edicts, declarations, letters-patent, decrees and regulations contrary to the same.

So given by commandment, etc.

EDICT OF THE KING

The Turgot Collection: Writings, Speeches, and Letters of Anne Robert Jacques Turgot, Baron de Laune

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