The Sun.
London, England, 1829-03-23 00:00:00

THE CORN TRADE.

The following interesting CIRCULAR, from an ex-
tensive Corn House in the North, has created a
good deal of discussion, not only in MARK-LANE,
but elsewhere :

" The small supplies we receive weekly, and the short
stock in the hands of the farmers, confirm the opinion
that the deficiency of the Wheat crop in this district, at
least, was not over-rated at a third, and the information
received from other districts lead to the same conclusion
respecting the crop all over the empire. Many people are,
therefore, at a loss to account for the late reduction in
the price of corn, and particularly in the price of Wheat.
—When, however, we consider the recent conduct of the
Bank of England, in declining to discount the paper of
corn merchants at a time when they had made so large an
importation of Wheat immediately after harvest, the sur-
prize ought not to be that prices fell so much, but that
they did not fall more.
" The policy of the Bank in withholding at such a period
the usual facilities of discount from persons engaged in the
Corn trade may well be questioned. It has been the cause
of a much larger consumption of Wheat than would other-
wise have taken place—it has checked the purchase of
Wheat abroad—it may possibly have the effect of exposing
the country before we hare another harvest to the evils of
a real scarcity. No man, who has given any attention to
the subject, can pretend to say that we shall not yet have
occasion for extensive importations of Wheat, and if from
the reluctinn of prices the French Government should be
again induced to compete with us in the buying up of
Wheat in the Baltic (for the Governments instead of mer-
chants in other countries import under such circumstances)
who can answer for the requisite supplies for this country
being obtained ? Any restriction in the discounting of
corn-factors' bills in London, quickly extends itself to the
country, and particularly at a time when the country
bankers have to provide for the withdrawing of the 1/.
notes; thus leading to a system of forced and ruinous sales
of Corn. That in such a state of things markets have re-
covered, is one of the strongest proofs of the extent and
reality of that deficiency, under the consequences of which
the country must be prepared to bear up and sustain itself."
Under date of the 21st March, the same House ob-
serves—

" The discredit which in London has been thrown upon
bills of exchange, arising out of transactions in Corn, is
still severely felt in the country; for in the maritime dis-
tricts the greatest parts of the bills in circulation are such
as have been drawn in payment for Corn, and if those
bills cease to be readily convertible into money, from that
moment the demand for Corn is checked and restrained.
In the northern part of this district (a part exclusively
agricultural), the price of Wheat in one month actually
fell from 80s. to 565. per quarter, and caused the greatest
consternation ; for how were farmers with little more than
half a crop, and with the price of Wheat at 565., to make
shift to pay their rents? Whether the ban under which
so large a portion of the circulating medium has been
placed is partially relaxed, or the deficiency of the crop is
so apparent, that public opinion is becoming too strong
for this mischievous interference, is not easy to deter-
mine; but markets are recovering, and the farmers' supply
of Wheat to-day was readily sold at 2s. to 3s. per quarter
advance. Foreign Wheat was also more saleable, but not
at a similar improvement in price.
" Barley is 2s. per quarter, and Oats' about Is. per qr.
dearer, since last Saturday, and the supply of both rather
short."

COMMUNICATION FROM DR. KNOX.