'The table commences with 1812, and exhibits a great falling
off in the price of wheat and iron coincidently with a fall in
the price of gold, and leading to the inference of cause and
effect. Now, as regards wheat, it so happened that in 1812 it
reached its highest price in consequence of a series of bad
harvests, when relief by importation was difficult and enormously
expensive. In December, 1813, whilst the price of gold had risen
to L5, the price of wheat had fallen to 73s., or 50 per cent
under what it had been in the spring of 1812; proving clearly
that the two articles were under the influence of opposite
causes.
'Again, in 1812, the freight and insurance on Swedish iron
were so much higher than at present as to account for nearly the
whole of the difference of price: and in 1818 there had been an
extensive speculation which had raised the price of all iron, so
that a part of the subsequent decline was a mere reaction from a
previously unfounded elevation. More recently, in 1825, there was
a great speculative rise in the article, which served as a strong
stimulus to increased production: this, aided by improved power
of machinery, has proceeded to such an extent as fully to account
for the fall of price.
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