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On the Trade in Grain (Du commerce des bleds) – Jean-Antoine-Nicolas de Caritat de Condorcet

Jean-Antoine-Nicolas de Caritat de Condorcet
Reading time 13 min read
Published 1775
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Context and Purpose

Condorcet’s writings on the grain trade belong to one of the great practical debates of the French Enlightenment: whether the commerce in grain — the staple of subsistence for the whole population — should be left free or regulated by the state. This question was not abstract. Bread was the dominant item in the budget of ordinary French people, and fluctuations in its price could mean the difference between sufficiency and starvation. Royal policy had long oscillated between two poles: a heavily regulated regime in which the movement of grain between provinces and its export abroad were restricted, prices were watched, and authorities intervened to provision markets; and a liberalized regime in which grain could move freely and be sold at prices set by supply and demand.

Condorcet wrote on this subject in the 1770s, in the orbit of his close friend and intellectual ally Anne-Robert-Jacques Turgot, the leading reforming administrator of the age. Turgot, first as intendant of the Limousin and then as Controller-General of Finances under Louis XVI, championed the freeing of the grain trade as a central plank of his reform program. The economic doctrine behind this position descended from the Physiocrats — Quesnay, Mercier de la Rivière, and their school — who held that agriculture was the sole true source of wealth and that commerce in its products should be left to the natural order. Turgot’s own famous memoranda and the liberalizing edicts he issued provoked fierce controversy, including the disturbances known as the “Flour War” (Guerre des farines) of 1775, when rising bread prices triggered riots across the regions around Paris.

Condorcet’s contributions to this literature are essentially a philosophical and polemical defense of free commerce in grain. They form part of his lifelong effort to bring the methods of reason — and, where possible, of mathematics and clear analysis — to bear on questions of social and economic policy. He approached the grain question not as a merchant or an administrator but as a mathematician and philosophe convinced that sound reasoning about human welfare, married to the empirical realities of agriculture, pointed toward liberty.

The Central Thesis: Liberty Serves Subsistence

The core argument Condorcet advances is that freedom of the grain trade — both internal (between provinces) and external (export abroad) — is the policy most conducive to the stable and abundant subsistence of the people, and that the regulatory apparatus designed to protect consumers in fact harms them. This is counterintuitive, and Condorcet’s task is to show why the apparent remedy of regulation is worse than the supposed disease of free commerce.

His reasoning proceeds from the behavior of prices and the incentives they create for producers. When grain may be freely bought, stored, moved, and exported, its price rises in times of relative scarcity and falls in times of plenty. These price signals, far from being an evil, perform an indispensable social function. A higher price in a region of shortage draws grain from regions of abundance, since merchants seek profit by carrying it where it is dearest; this movement equalizes supply across the kingdom and relieves local scarcities that regulation, by confining grain to its place of origin, actually aggravates. A free export trade, likewise, assures farmers that in years of good harvest they will find a market and a remunerative price rather than being left with unsellable surpluses that collapse in value. The assurance of a market in good years is precisely what encourages the farmer to expand cultivation, to invest in his land, and to carry stores from one year to the next — all of which increase the total quantity of grain available and smooth out the swings between glut and dearth.

Condorcet insists, then, on the role of the merchant, the dealer, and the warehouse-keeper — the figures most suspected and most hated by popular opinion in times of high prices. The speculator who buys grain cheaply in a plentiful year and holds it for sale in a lean one is, in Condorcet’s analysis, a public benefactor rather than a public enemy. By storing when prices are low he prevents waste and props up the farmer; by releasing stores when prices are high he moderates the very scarcity that the public blames him for exploiting. His self-interest is aligned with the general interest. The hoarder whom the crowd wishes to punish is in fact performing the work of insurance across time that no public magistrate could do as efficiently. Regulation that forbids storage, punishes dealers, or caps prices destroys this mechanism and leaves society defenseless against the natural irregularity of harvests.

The Attack on Regulation and the Fear of Dearth

Having laid out the beneficial workings of a free market, Condorcet turns to a systematic critique of the regulatory system and of the popular and administrative mentality that sustains it. The regime of controls rested on a mixture of fear and misunderstanding: fear of famine and of the disorder that high bread prices could bring, and a misunderstanding of the causes of scarcity. Condorcet argues that the controls themselves manufacture or deepen the shortages they claim to prevent.

Several lines of argument run through this critique. First, price ceilings and forced sales discourage farmers and dealers from bringing grain to market. If a producer cannot obtain a price that covers his costs and risks, he will reduce what he grows or withhold what he has; the attempt to force cheap bread yields, in the end, less bread. Second, restrictions on movement between provinces trap surpluses in some places while leaving others in distress, converting what would be a general sufficiency into scattered local crises. Third, the prohibition of export in bad years, and the uncertainty about whether export will be permitted in any given year, destroy the farmer’s confidence in a future market; since agriculture is a long-term enterprise in which decisions about sowing and cultivation are made far in advance, this uncertainty depresses production itself.

Condorcet also addresses the psychological and political dimension of the question, which he understood to be the real obstacle to reform. The populace, seeing the price of bread rise, concludes that malign human agency — grasping merchants, conspiring officials, a “famine pact” — is responsible, and demands intervention. Condorcet seeks to dispel this conviction by directing attention to natural causes: the failure of a harvest, the irregularity of seasons, the sheer difficulty of feeding a large population from a variable agricultural output. He wants the reader to see that high prices in a bad year are the symptom of a real scarcity, not its cause, and that the free movement and storage of grain are the mechanisms that most effectively limit how high those prices must rise. Suppressing the dealer and the merchant does not create grain; it only removes the agents who could have mitigated the shortage.

A further strand of his argument concerns the proper object of public policy. Condorcet distinguishes between the interest of the consumer considered momentarily — who naturally wants bread as cheap as possible at every instant — and the true, durable interest of the whole society, including the consumer, in a steady and secure supply over the long run. Regulation panders to the first and sacrifices the second. A policy that holds prices artificially low in ordinary times undermines the production and the reserves that alone can protect against the catastrophic prices of a genuinely bad year. Liberty, by contrast, produces a system in which prices rise and fall within narrower limits, because production is larger, stores are deeper, and grain flows to where it is needed.

Method: Reason, Evidence, and the Rights of Individuals

What distinguishes Condorcet’s handling of the grain question from that of the Physiocrats proper and from Turgot’s administrative memoranda is his characteristic philosophical temper. He treats the matter both as a question of economic calculation and as a question of justice and rights. The liberty to buy, sell, store, and transport one’s own grain is, for Condorcet, not merely expedient but a natural right of the proprietor and the citizen; the burden of proof falls on those who would restrict it. Regulation is an interference with legitimate property and legitimate commerce, and such interference must be justified by a clear demonstration that it produces a public good greater than the harm it inflicts. His analysis aims to show that no such demonstration can be made — that regulation fails even on its own terms, delivering neither cheaper bread over time nor greater security against famine.

Condorcet is also concerned, as he always was, with the quality of public reasoning. He regards the regulationist position as resting on errors of analysis — on confusing cause and effect, on mistaking the momentary for the durable, on crediting popular prejudice against commerce. He therefore writes partly as an educator of opinion, trying to equip the reader with the conceptual tools to see through the appearances that mislead the crowd and the timid administrator. This reflects a conviction central to his whole career: that progress in human affairs depends on the diffusion of sound reasoning, and that even questions as charged as the price of bread can and must be subjected to clear-headed analysis rather than left to passion and prejudice.

His engagement with the subject was not purely theoretical. Condorcet brought a quantitative sensibility to social questions, and in his writings on this and related matters he was attentive to the empirical patterns of harvests and prices and to the magnitudes involved — how much grain a population consumes, how far surpluses and deficits can be made to compensate one another, what reserves are needed to bridge from one harvest to the next. He was skeptical of alarmist estimates of the danger of free export, arguing that the quantities ever likely to leave the kingdom were small relative to total consumption and could not, under free trade, produce the famines that opponents feared, precisely because the same freedom that permitted export also permitted import and the return flow of grain when domestic prices rose.

Place in Condorcet’s Work and the Turgot Reforms

Condorcet’s writing on grain is inseparable from his alliance with Turgot and from the broader reforming moment of the mid-1770s. Turgot’s ministry attempted to translate liberal economic principles into law, and Condorcet lent his pen to the defense and explanation of those policies. The two men shared a vision of a rational, humane reform of French institutions, and the grain trade was one of its first and most contested fields. When Turgot’s reforms met resistance — from vested interests, from the parlements, from popular unrest during the Flour War, and ultimately from a court that dismissed him in 1776 — the cause of free commerce in grain suffered a political defeat even as its intellectual defenders, Condorcet among them, continued to argue for it.

This episode belongs to the larger arc of Condorcet’s life and thought. A mathematician of the first rank, admitted young to the Academy of Sciences and later its permanent secretary, he was also one of the last great figures of the Enlightenment who sought to extend the authority of reason from the natural sciences into the moral and political sphere. His work on the grain trade is of a piece with his famous application of mathematics to the theory of voting and collective decision, with his advocacy of public education, religious toleration, the abolition of slavery, and the rights of women, and ultimately with the sweeping vision of human progress he set out at the end of his life in the Sketch for a Historical Picture of the Progress of the Human Mind, written while he was in hiding during the Terror. In all these endeavors the same conviction animates him: that human welfare can be advanced by clear reasoning about causes and effects, by the removal of arbitrary restraints, and by the gradual perfection of institutions in accordance with reason and justice.

In the specific field of political economy, Condorcet occupies a position close to the Physiocrats and to the emerging liberal economics that Turgot did much to shape, yet he was never a doctrinaire member of the Physiocratic sect. He shared their commitment to the freedom of trade and to the importance of agriculture, and he agreed with their conclusion that the grain trade should be free, but he arrived there by his own route, emphasizing the analysis of incentives, the role of the merchant and of stocks across time, the rights of the individual, and the disciplined examination of evidence rather than the systematic metaphysics of the “net product” and the natural order that characterized orthodox Physiocracy. His treatment thus has an analytical clarity and a focus on the practical mechanisms of markets that reads, in places, strikingly like the economic argument that would become the common property of classical liberal economics.

Significance and Legacy

The debate over the grain trade in which Condorcet intervened was one of the defining economic controversies of the eighteenth century in France, and the arguments marshaled on both sides reverberated through the Revolution and beyond. The liberal case — that free commerce, by mobilizing the self-interest of producers and dealers, best secures the people’s subsistence — would eventually become a cornerstone of economic orthodoxy, but in Condorcet’s own time it remained bitterly contested and politically fragile. The experience of the Flour War demonstrated how explosive the issue was: liberalization, introduced in a period of poor harvests and rising prices, seemed to ordinary people to confirm their worst suspicions about speculators and to justify demands for regulation and the policing of markets. The tension between the economist’s long-run argument and the consumer’s immediate experience of a dear loaf was never resolved in the period, and it returned with vengeance during the Revolution, when the demand for price controls — the maximum on grain and bread — again overrode liberal principle in the face of popular pressure and wartime scarcity.

Condorcet’s writings on the subject are significant precisely because they articulate, with unusual rigor and humanity, the liberal position at the moment of its first great trial in French policy. They show an Enlightenment philosophe refusing to accept that compassion for the poor requires the regulation of the grain trade, and arguing instead that genuine compassion, informed by correct analysis, points the other way — toward a freedom that would make dearth rarer and milder. They also exemplify Condorcet’s distinctive method of bringing analytical reasoning to bear on social problems, insisting that policy be judged by its real effects on human welfare over time rather than by its surface appeal or its accordance with popular feeling.

The practical fate of the policy Condorcet defended was mixed and often adverse in his own lifetime, but the intellectual tradition to which his grain writings belong proved durable. His defense of free internal and external commerce in grain, his rehabilitation of the much-maligned dealer and speculator as agents of social utility, his insistence on distinguishing symptoms from causes in the phenomenon of high prices, and his grounding of commercial liberty in both utility and right together form a coherent and forceful statement of the liberal economic case. It is a case made by a man who was simultaneously a great mathematician, a reformer close to the center of power, and a philosopher of human progress — and who, with characteristic optimism, believed that even so intractable and emotionally charged a matter as the price of the people’s bread could be settled by patient reasoning in the service of the common good.

Read today, Condorcet’s intervention in the grain debate illuminates both the promise and the limits of Enlightenment rationalism in the sphere of economic policy. It captures the conviction that reason could reconcile the interests of the producer and the consumer and dissolve the suspicion that set them against each other; and, in the stubborn resistance it encountered, it also foreshadows how difficult it would prove to govern by such principles in a society where the fear of famine ran deep and where the sight of rising bread prices could, in a single bad season, overwhelm the most careful demonstrations of the economists. In Condorcet’s own hands, however, the argument retains its clarity and its conviction: that liberty, properly understood, is not the enemy of the hungry but their surest friend.

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