Wehavealreadyseenthattheprofitoncapitalisinproportiontoitssize.Ifweignoredeliberatecompetitionforthemoment，alargecapitalaccumulatesmorerapidly，inproportiontoitssize，thandoesasmallcapital.
Thismeansthat，quiteapartfromcompetition，theaccumulationoflargecapitaltakesplaceatamuchfasterratethanthatofsmallcapital.
But，letusfollowthisprocessfurther.
Ascapitalsmultiply，theprofitsoncapitaldiminish，asaresultofcompetition.So，thefirsttosufferisthesmallcapitalist.
\"Inacountrywhichhadacquireditsfullcomplementofriches，astheordinaryrateofclearprofitwouldbeverysmall，sotheusualmarketrateofinterestwhichcouldbeaffordedoutofitwouldbesolowastorenderitimpossibleforanybuttheverywealthiestofpeopletoliveupontheinterestoftheirmoney.Allpeopleofsmallormiddlingfortuneswouldbeobligedtosuper—intendthemselvestheemploymentoftheirownstocks.Itwouldbenecessarythatalmosteverymanshouldbeamanofbusiness，orengageinsomesortoftrade.\"
[SmithI，p.86]Thisisthesituationmostdeartotheheartofpoliticaleconomy.
\"Theproportionbetweencapitalandrevenue，therefore，seemseverywheretoregulatetheproportionbetweenindustryandidleness.Wherevercapitalpredominates，industryprevails：
whereverrevenue，idleness.\"
[Smith，p.301]But，whatabouttheemploymentofcapitalinthisincreasedcompetition？
\"Asthequantityofstocktobelentatinterestincreases，theinterest，orthepricewhichmustbepaidfortheuseofthatstock，necessarilydiminishes，notonlyfromthosegeneralcauses，whichmakethemarketpriceofthingscommonlydiminishastheirquantityincreases，butfromothercauseswhicharepeculiartothisparticularcase.
\"Ascapitalsincreaseinanycountry，theprofitswhichcanbemadebyemployingthemnecessarilydiminish.Itbecomesgraduallymoreandmoredifficulttofindwithinthecountryaprofitablemethodofemployinganynewcapital.Therearises，inconsequence，acompetitionbetweendifferentcapitals，theownerofoneendeavoringtogetpossessionofthatemploymentwhichisoccupiedbyanother.
\"But，onmostoccassionshecanhopetojostlethatotheroutofthisemploymentbynoothermeansbutbydealinguponmorereasonableterms.Hemustnotonlysellwhathedealsinsomewhatcheaper，but，inordertogetittosell，hemustsometimes，too，buyitdearer.
\"Thedemandforproductivelabor，bytheincreaseofthefundswhicharedestinedformaintainingit，growseverydaygreaterandgreater.Laborerseasilyfindemployment，buttheownersofcapitalsfinditdifficulttogetlaborerstoemploy.Theircompetitionraisesthewagesoflaborandsinkstheprofitsofstock.\"
[Smithp.316]Thesmallcapitalist，therefore，hastwochoices：hecaneitherconsumehiscapital，sincehecannolongerliveontheinterest——i.e.，ceasetobeacapitalist;or，hecanhimselfsetupabusiness，sellhisgoodsatalowerprice，andbuythematadearerpricethantherichercapitalist，andpayhigherwages，whichmeansthathewouldgobankrupt——sincethemarketpriceisalreadyverylowasaresultoftheintensecompetitionwepresupposed.If，ontheotherhand，thebigcapitalistwantstosqueezeoutthesmallerone，hehasallthesameadvantagesoverhimasthecapitalisthasovertheworker.Heiscompensatedforthesmallerprofitsbythelargersizeofhiscapital，andhecanevenputupwithshort—termlossesuntilthesmallercapitalistisruinedandheisfreedofthiscompetition.Inthisway，heaccumulatestheprofitsofthesmallcapitalist.
Furthermore：thebigcapitalistalwaysbuysmorecheaplythanthesmallcapitalist，becausehebuysinlargerquantities.Hecan，therefore，affordtosellatalowerprice.
But，ifafallintherateofinterestturnsthemiddlecapitalistsfromrentiersintobusinessmen，converselytheincreaseinbusinesscapitalsandtheresultinglowerrateofprofitproduceafallintherateofinterest.
\"But，whentheprofitswhichcanbemadebyuseofacapitalarediminishedthepricewhichcanbepaidfortheuseofit
mustnecessarilybediminishedwiththem.\"
[Smithp.316]
\"Asriches，improvement，andpopulation，haveincreased，interesthasdeclined\"，andconsequentlytheprofitsofstock;\"afterthesearediminished，stockmaynotonlycontinuetoincrease，buttoincreasemuchfasterthanbeforeAgreatstock，thoughwithsmallprofits，generallyincreasesfasterthanasmallstockwithgreatprofits.Money，saystheproverb，makesmoney.\"
[Smithp.83]So，ifthislargecapitalisopposedbysmallcapitalswithsmallprofits，asinthecaseundertheconditionsofintensecompetitionwhichwehavepresupposed，itcrushesthemcompletely.
Theinevitableconsequenceofthiscompetitionisthedeteriorationinthequalityofgoods，adulteration，spuriousproduction，anduniversalpollutiontobefoundinlargetowns.
Anotherimportantfactorinthecompetitionbetweenbigandsmallcapitalsistherelationshipbetweenfixedcapitalandcirculatingcapital.
Circulatingcapitaliscapital\"employedinraising，manufacturing，orpurchasinggoods，andsellingthemagainataprofit.Thecapitalemployedinthismanneryieldsnorevenueorprofittoitsemployer，whileiteitherremainsinhispossessionorcontinuesinthesameshapeHiscapitaliscontinuallygoingfromhiminoneshape，andreturningtohiminanother，anditisonlybymeansofsuchcirculation，orsuccessiveexchanges，thatiscanyieldhimanyprofit\"Fixedcapitaliscapital\"employedintheimprovementofland，inthepurchaseofusefulmachinesandinstruments，orinsuchlikethings
\"everysavingintheexpenseofsupportingthefixedcapitaloftheundertakerofeveryworkisnecessarilydividedbetweenhisfixedandhiscirculatingcapital.Whilehiswholecapitalremainsthesame，thesmallertheonepart，thegreatermustnecessarilybetheother.Itisthecirculatingcapitalwhichfurnishesthematerialsandwagesoflabor，andputsindustryintomotion.Everysaving，therefore，intheexpenseofmaintainingthefixedcapital，whichdoesnotdiminishtheproductivepowersoflabor，mustincreasethefundwhichputsindustryintomotion\"
[Smith，p.257]Itisimmediatelyclearthattherelationbetweenfixedcapitalandcirculatingcapitalismuchmorefavorabletothebigcapitalistthanitistothesmallercapitalist.Thedifferenceinvolumebetweentheamountoffixedcapitalneededbyaverybigbankerandtheamountneededbyaverysmalloneisinsignificant.Theonlyfixedcapitaltheyneedisanoffice.Theequipmentneededbyabiglandownerdoesnotincreaseinproportiontotheextentofhisland.Similarly，theamountofcreditavailabletoabigcapitalist，comparedwithasmallerone，representsabiggersavinginfixedcapital——namely，intheamountofmoneywhichhemusthaveavailableatalltimes.Finally，itgoeswithoutsayingthatwhereindustriallaborishighlydeveloped——i.e.，wherealmostallmanualcraftshavebecomefactorylabor——theentirecapitalofthesmallcapitalistisnotenoughtoprocureforhimeventhenecessaryfixedcapital.Itiswellknownthatlarge—scale[agricultural]cultivationgenerallyrequiresonlyasmallnumberofhands.
Theaccumulationoflargecapitalsisgenerallyaccompaniedbyaconcentrationandsimplificationoffixedcapital，ascomparedwiththesmallercapitalists.Thebigcapitalistestablishesforhimselfsomekindoforganizationoftheinstrumentsoflabor.
\"Similarly，inthesphereofindustryeveryfactoryandeveryworkshopisamorecomprehensivecombinationofalargermaterialpropertywithnumerousandvariedintellectualabilitiesandtechnicalskillswhichhaveastheirsharedaimthedevelopmentofproductionWherelegislationpreservestheunityoflargelandedproperties，thesurplusquantityofagrowingpopulationcrowdstogetherintoindustry，anditisthereforemainlyinindustrythattheproletariatgathersinlargenumbers，asinGreatBritain.But，wherelegislationallowsthecontinuousdivisionoftheland，asinFrance，thenumberofsmall，debt—riddenproprietorsincreasesandmanyofthemareforcedintotheclassoftheneedyandthediscontented.Shouldthisdivisionandindebtednessgofarenough，inthesamewayasbigindustrydestroyssmallindustry;andsincelargerlandholdingcomplexesoncemorecomeintobeing，manypropertylessworkersnolongerneededonthelandare，inthiscasetoo，forcedintoindustry.\"
[Schulz，pp.58—9]
\"Thecharacterofcommoditiesofthesamesortchangesasaresultofchangesinthenatureofproduction，andinparticularasaresultofmechanization.Onlybyeliminatinghumanlaborhasitbecomepossibletospinfromapoundofcottonworth3s.8d.，350
hanksworth25guineasand167milesinlength.\"
[Schulz，p.62]
\"Onaverage，thepricesofcottongoodshavefallenby11/12thsoverthepast45years，andaccordingtoMarshall’scalculationsaquantityofmanufacturecosting16s.in1814nowcost1s.10d.Thedropinpricesofindustrialproductshasmeantbothariseinhomeconsumptionandanincreaseintheforeignmarket;asaresult，thenumberofcottonworkersinGreatBritainnotonlydidnotfallaftertheintroductionofmachinery，butrosefrom40，000to1.5
million.Asfortheearningsofindustrialemployersandworkers，thegrowingcompetitionamongfactoryownershasinevitablyresultedinadropinprofitsinproportiontothequantityofproducts.Between1820and1833，thegrossprofitmadebyManchestermanufacturersonapieceofcalicofellfrom4s.1.5d.
to1s.9d.But，tomakeupforthisloss，therateofproductionhasbeencorrespondinglyincreased.Theconsequenceisthattherehavebeeninstancesofoverproductioninsomebranchesofindustry;
thattherearefrequentbankruptcies，whichcreatefluctuationsofpropertywithintheclassofcapitalistsandmastersoflabor，andforceanumberofthosewhohavebeenruinedeconomicallyintotheranksoftheproletariat;andthatfrequentandsuddenrestrictioninemploymentamongtheclassofwage—earners.\"
[Schulz，p.63]
\"Tohireoutone’slaboristobeginone’senslavement;tohireoutthematerialsoflaboristoachieveone’sfreedomLaborisman，whilemattercontainsnothinghuman.\"
[Pecqueur，pp.411—12]
\"Theelementofmatter，whichcandonothingtocreatewealthwithouttheelementoflabor，acquiresthemagicalpropertyofbeingfruitfulforthem[thatis，forthepropertyowners]，asiftheythemselveshadprovidedthisindispensableelement.\"
[Pecqueur，p.412]
\"Ifweassumethataworkercanearnanaverageof400francsayearfromhisdailylabor，andthatthissumissufficientforoneadulttoekeoutaliving，thenanyonewhoreceives2，000francsininterestorrentisindirectlyforcing5mentoworkforhim;anincomeof100，000francsrepresentsthelaborof250men;and1，000，000francsthelaborof2，500（300million——LouisPhilippe——thereforerepresentsthelaborof750，000workers）.\"
[Pecqueur，pp.412—13]
\"Thepropertyownershavereceivedfromhumanlawtherighttouseandabusethematerialsofalllabor——i.e.，todoastheywishwiththemThereisnolawwhichobligesthempunctuallyandatalltimetoprovideworkforthosewhodonotownpropertyortopaythemawagewhichisatalltimesadequate，etc.\"
[Pecqueur，p.413]
\"Completefreedomastothenature，thequantity，thequality，andtheappropriatenessofproduction，theuseandconsumptionofwealthandthedisposalofthematerialsofalllabor.Everyoneisfreetoexchangehispossessionsashechooses，withoutanyotherconsiderationthanhisowninterestasanindividual.\"
[Pecqueur，p.413]
\"Competitionissimplyanexpressionoffreeexchange，whichisitselftheimmediateandlogicalconsequenceoftherightofanyindividualtouseandabuseallinstrumentsofproduction.Thesethreeeconomicmoments，whichareinrealityonlyone——therighttouseandabuse，freedomofexchangeandunrestrictedcompetition——havethefollowingconsequences：eachproduceswhathewants，howhewants，whenhewants，wherehewants;heproduceswellorheproducesbadly，toomuchornotenough，toolateortooearly，toodearortoocheap;nooneknowswhetherhewillsell，towhomhewillsell，howhewillsell，whenhewillsell，wherehewillsell;
thesamegoesforbuying.Theproducerisacquaintedwithneithertheneedsnortheresources，neitherthedemandnorthesupply.Hesellswhenhewants，thenhecan，wherehewants，towhomhewantsandatthepricehewants.Thesamegoesforbuying.Inallthisheisatalltimestheplaythingofchance，theslaveofthelawofthestrongest，oftheleastpressed，oftherichestWhileatonepointthereisashortageofwealth，atanotherthereisasurfeitandsquanderingofthesame.Whileoneproducersellsagreatdeal，orathighpricesandwithanenormousprofit，anothersellsnothingorsellsatalossSupplyisignorantofdemand，anddemandisignorantofsupply.Youproduceonthebasisofapreferenceorafashionprevalentamongtheconsumingpublic;butbythetimeyouarepreparingtoputyourcommodityonthemarket，themoodhaspassedandsomeotherkindofproducthascomeintofashionTheinevitableconsequencesarecontinualandspreadingbankruptcies，miscalculations，suddencollapses，andunexpectedfortunes;tradecrises，unemployment，periodicsurfeitsandshortages;instabilityanddeclineofwagesandprofits;thelossorenormouswasteofwealth，oftime，andofeffortinthearenaoffiercecompetition.\"
[Pecqueur，p.414—16]Ricardoinhisbook[OnthePrinciplesofPoliticalEconomyetal]
（rentofland）：Nationsaremerelyworkshopsforproduction，andmanisamachineforconsumingandproducing.Humanlifeisapieceofcapital.
Economiclawsruletheworldblindly.ForRicardo，menarenothing，theproducteverything.InChapter26，oftheFrenchtranslation，weread：
\"Toanindividualwithacapitalof20，000pounds，whoseprofitswere2，000perannum，itwouldbeamatterquiteindifferentwhetherhiscapitalwouldemployahundredorathousandmenisnottherealinterestofthenationsimilar？Provideditsnetrealincome，itsrentsandprofits，bethesame，itisofnoimportancewhetherthenationconsistsof10or12millioninhabitants.\"
[Ricardo，pp.234—5]
\"Intruth，\"saysM.deSismondi，\"itremainsonlytodesirethattheking，whohasbeenleftquitealoneontheisland，should，bycontinuouslycrankingupanumberofautomatons，getallEngland’sworkdone.\"
[J.C.L.SimondedeSismondi，Nouveauxprincipesd’economicpolitique，2volumes，Paris，1819，II，p.331]
\"Themasterwhobuysaworker’slaboratapricesolowthatitisbarelyenoughtomeethismostpressingneedsisresponsibleneitherforthelowwagesnorthelonghoursofwork：hehimselfissubjecttothelawwhichheimposesMiseryistheproductnotsomuchofmenasofthepowerofthings.\"
[Buret，I，p.82]
\"TheinhabitantsofmanydifferentpartsofGreatBritainhavenotcapitalsufficienttoimproveandcultivatealltheirlands.ThewoolofthesoutherncountiesofScotlandis，agreatpartofit，afteralonglandcarriagethroughverybadroads，manufacturedinYorkshire，forwantofcapitaltomanufactureitathome.TherearemanylittlemanufacturingtownsinGreatBritain，ofwhichtheinhabitantshavenotcapitalsufficienttotransporttheproduceoftheirownindustrytothosedistantmarketswherethereisdemandandconsumptionforit.Ifthereareanymerchantsamongthem，theyareproperlyonlytheagentsofwealthiermerchantswhoresideinsomeofthegreatercommercialcities.\"
[Smith，I，pp.326—7]
\"Theannualproduceofthelandandlaborofanynationcanbeincreasedinitsvaluebynoothermeansbutbyincreasingeitherthenumberofitsproductivelaborers，ortheproductivepowersofthoselaborerswhohadbeforebeenemployedIneithercase，anadditionalcapitalisalmostalwaysrequired.\"
[Smith，I，pp.306—7]
\"Astheaccumulationofstockmust，inthenatureofthings，previoustothedivisionoflabor，solaborcanbemoreandmoresubdividedinproportiononlyasstockispreviouslymoreandmoreaccumulated.Thequantityofmaterialswhichthesamenumberofpeoplecanworkup，increasesinagreatproportionaslaborcomestobemoreandmoresubdivided;andastheoperationsofeachworkmanaregraduallyreducedtoagreaterdegreeofsimplicity，avarietyofnewmachinescometobeinventedforfacilitatingandabridgingtheseoperations.Asthedivisionoflaboradvances，therefore，inordertogiveconstantemploymenttoanequalnumberofworkmen，anequalstockofprovisions，andagreaterstockofmaterialsandtoolsthanwhatwouldhavebeennecessaryinaruderstateofthings，mustbeaccumulatedbeforehand.Butthenumberofworkmenineverybranchofbusinessgenerallyincreaseswiththedivisionoflaborinthatbranch，orratheritistheincreaseoftheirnumberwhichenablesthemtoclassandsubdividethemselvesinthismanner.\"
[Smith，I，pp.241—2]
\"Astheaccumulationofstockispreviouslynecessaryforcarryingonthisgreatimprovementintheproductivepowersoflabor，sothataccumulationnaturallyleadstothisimprovement.Thepersonwhoemployshisstockinmaintaininglabor，necessarilywishestoemployitinsuchamannerastoproduceasgreataquantityofworkaspossible.Heendeavors，therefore，bothtomakeamonghisworkmenthemostproperdistributionofemployment，andtofurnishthemwiththebestmachineswhichhecaneitherinventoraffordtopurchase.Hisabilitiesinboththeserespectsaregenerallyinproportiontotheextentofhisstock，ortothenumberofpeopleitcanemploy.Thequantityofindustry，therefore，notonlyincreasesineverycountrywiththeincreaseofthestockwhichemploysit，but，inconsequenceofthatincrease，thesamequantityofindustryproducesamuchgreaterquantityofwork.\"
[Smith，I，p.242]Henceoverproduction.
\"Moreextensivecombinationsofproductiveforcesintradeandindustrythroughtheunificationofmorenumerousandmorevariedhumanandnaturalforcesforundertakingsonalargerscale.Also，therearealreadyanumberofcasesofcloserlinksamongthemainbranchesofproductionthemselves.Thus，largemanufacturerswilltrytoacquirelargeestatesinordertoavoiddependingonothersforatleastapartoftherawmaterialstheyneedfortheirindustry;ortheywillsetupatradingconcernlinkedtotheirindustrialenterprisesandnotonlyselltheirownproductsbutbuyupandretailothersortsofgoodstotheirworkers.InEngland，wheretherearesomefactoryownerswhoemploybetween10—and12，000workerssimilarcombinationsofdifferentbranchesofproductionunderthecontrolofoneman，smallstatesorprovinceswithinastate，arenotuncommon.Forexample，themine—ownersnearBirminghamrecentlytookovertheentireprocessofironproduction，whichwaspreviouslyinthehandsofseveraldifferententrepreneursandowners.See’DerbergannischeDistriktbeiBirmingham’，DeutscheVierteljahrsschrift，no.3，1838.
Finally，inthelargerjoint—stockcompanies，whichhavebecomesonumerous，wefindextensivecombinationsofthefinancialresourcesofmanyshareholderswiththescientificandtechnicalknowledgeandskillsofotherstowhomtheexecutionoftheworkisentrusted.Inthisway，itispossibleformanycapitaliststoapplytheirsavingsinamorediversifiedwayandeveninvestthemsimultaneouslyinagricultural，industrial，andcommercialproduction;asaresult，theirinterestsalsobecomemorediversifiedandtheconflictbetweenagricultural，industrial，andcommercialinterestsbeginstofadeaway.Butthegreatereasewithwhichcapitalcanbeemployedfruitfullyinthemostvariedfieldsinevitablyincreasestheconflictbetweenthepropertiedandthepropertylessclasses.\"
[Schulz，pp.241—2]Theenormousprofitwhichthelandlordsmakeoutofmisery.Thegreaterthemiserycausedbyindustry，thehighertherent.
Itisthesamewiththerateofinterestonthevicesoftheproletariat.
（Prostitution，drinking，thepawnbroker.）
Theaccumulationofcapitalsincreasesandthecompetitionbetweenthemdiminishes，ascapitalandlandedpropertyareunitedtogetherinonehandandcapitalisenabled，becauseofitssize，tocombinedifferentbranchesofproduction.
Indifferencetowardsmen.Smith’s20lotterytickets.[Smith，I，p.94]
Say’snetandgrossrevenue.
RENTOFLAND
Therightofthelandownerscanbetracedbacktorobbery.[Say，I，p.136，n.2]Landowners，likeallothermen，lovetoreapwheretheyneversowed，anddemandarentevenforthenaturalproduceoftheland.[Smith，I，p.44]
\"Therentofland，itmaybethought，isfrequentlynomorethanareasonableprofitorinterestforthestocklaidoutbythelandlorduponitsimprovement.This，nodoubt，maybepartlythecaseuponsomeoccassionsThelandlorddemandsarentevenforunimprovedland，andthesupposedinterestorprofitupontheexpenseofimprovementisgenerallyanadditiontothisoriginalrent.Thoseimprovements，besides，arenotalwaysmadebythestockofthelandlord，butsometimesbythatofthetenant.Whentheleasecomestoberenewed，however，thelandlordcommonlydemandsthesameaugmentationofrentasiftheyhadbeenallmadebyhisown.
\"Hesometimesdemandsrentsforwhatisaltogetherincapableofhumanimprovements.\"
[Smith，I，p.131]Smithgivesasanexampleofthislastcase，kelp，aspeciesofseaweedwhich，whenburnt，yieldsanalkalinesaltusefulformakingglass，soap，etc.ItgrowsinseveralpartsofGreatBritain，especiallyinScotland，butonlyuponsuchrocksasliewithinthehighwatermark，whicharetwiceeverydaycoveredwiththeseaandofwhichtheproduce，therefore，wasneveraugmentedbyhumanindustry.Thelandlord，however，whoseestateisboundedbyakelpshoreofthiskind，demandsarentforitasmuchasforhiscornfields.TheseaintheneighborhoodoftheislandsofShetlandismorethancommonlyabundantinfish，whichmakeagreatpartofthesubsistenceoftheirinhabitants.Butinordertoprofitbytheproduceofthewater，theymusthaveahabitationontheneighboringland.Therentofthelandlordisinproportion，nottowhatthefarmercanmakebytheland，butbywhathecanmakebothbythelandandbythewater.
\"Thisrentmaybeconsideredastheproduceofthosepower，theuseofwhichthelandlordlendstothefarmer.Itisgreaterorsmalleraccordingtothesupposedextentofthosepowers，orinotherwords，accordingtothesupposednaturalofimprovedfertilityoftheland.Itistheworkofnaturewhichremainsafterdeductingorcompensationeverythingwhichcanberegardedastheworkofman.\"
[Smith，I，pp.324—5]
\"Therentofland，therefore，consideredasthepricepaidfortheuseofland，isnaturallyamonopolyprice.Itisnotatallproportionedtowhatthelandlordmayhavelaidoutupontheimprovementoftheland，ortowhathecanaffordtotake;buttowhatthefarmercanaffordtogive.\"
[Smith，I，p.131]
\"They[landlords]aretheonlyonesofthethreeorderswhoserevenuecoststhemneitherlabornorcare，butcomestothem，asitwere，ofitsownaccord，andindependentofanyplanorprojectoftheirown.
[Smith，I，p.230]Wehavealreadyseenhowthevolumeofrentdependsuponthedegreeoffertilityoftheland.
\"Therentoflandnotonlyvarieswithitsfertility，whateverbeitsproduce，butwithitssituation，whateverbeitsfertility.\"
[Smith，I，p.133]
\"Theproduceoflands，mines，andfisheries，whentheirnaturalfertilityisequal，isinproportiontotheextentandproperapplicationofthecapitalsemployedaboutthem.Whenthecapitalsareequalandequallywellapplied，itisinproportiontotheirnaturalfertility.\"
[Smith，I，p.249]TheseproportionsofSmithareimportant，becausetheyreducetherentland，wherecostsofproductionandsizeareequal，tothedegreeoffertilityofthesoil.Thisclearlydemonstratestheperversionofconceptsinpoliticaleconomy，whichturnsthefertilityofthesoilintoanattributeofthelandlord.
Butletusnowexaminetherelationbetweenlandlordandtenant.
\"Inadjustingthetermsofthelease，thelandlordendeavorstoleavehimnogreatershareoftheproductthanwhatissufficienttokeepupthestockfromwhichhefurnishestheseed，paysthelabor，andpurchasesandmaintainsthecattleandotherinstrumentsofhusbandry，togetherwiththeordinaryprofitsoffarmingstockintheneighborhood.Thisisevidentlythesmallestsharewithwhichthetenantcancontenthimselfwithoutbeingaloser，andthelandlordseldommeanstoleavehimanymore.Whateverpartoftheproduce，or，whatisthesamething，whateverpartofthepriceisoverandabovethisshare，henaturallyintendstoreservehimselfastherentofhisland，whichisevidentlythehighestthetenantcanaffordtopayintheactualcircumstancesofthelandThisportionmaystillbeconsideredasthenaturalrentofland，ortherentforwhichitisactuallymeantthatlandshouldforthemostpartbelet.\"
[Smith，I，p.130—31]
\"Thelandlords，\"saysSay，\"operateacertainkindofmonopolyagainstthetenants.Thedemandsfortheircommodity，whichisland，iscapableofaninfiniteexpansion;butthesupplycanonlyincreaseuptoacertainpointTheagreementreachedbetweenlandlordandtenantisalwaysasadvantageousaspossibletotheformerApartfromtheadvantagewhichhederivesfromthenatureofthecase，hederivesafurtheronefromhisposition，hislargerfortune，hiscreditandhisstanding;butthefirstoftheseadvantagesisinitselfenoughtoenablehimatalltimestoprofitfromthefavorablecircumstancesoftheland.TheopeningofacanalorroadandagrowthinpopulationandprosperityinacantonalwaysraisethepriceoftherentWhatismore，evenifthetenantmakesimprovementonhisplotoflandathisownexpense，hecanonlybenefitfromthiscapitalforthedurationofhislease;
whenhisleaserunsout，thiscapitalremainsinthehandsofthelandlord.Fromthismomenton，itisthelatterwhoreapstheinterest，eventhoughitwasnothewhomadetheoriginaloutlay;
fornowtherentisraisedproportionately.\"
[Say，II，pp.142—3]
\"Rent，consideredasthepricepaidfortheuseofland，isnaturallythehighestwhichthetenantcanaffordtopayintheactualcircumstancesoftheland.\"
[Smith，I，p.130]
\"Therentofanestateabovegroundcommonlymountstowhatissupposedtobeathirdofthegrossproduce;anditisgenerallyarentcertainandindependentoftheoccassionalvariationsinthecrop.\"
[Smith，I，p.153]
Rent\"isseldomlessthanafourth，andfrequentlymorethanathirdofthewholeproduce.\"
[Smith，I，p.325]Groundrentcannotbepaidinthecaseofallcommodities.Forexample，inmanydistrictsnorentispaidforstones.
\"Suchpartsonlyoftheproduceoflandcancommonlybebroughttomarketofwhichtheordinarypriceissufficienttoreplacethestockwhichmustbeemployedinbringingthemthither，togetherwithitsordinaryprofits.Iftheordinarypriceismorethanthis，thesurpluspartofitwillnaturallygototherentoftheland.Ifitisnotmore，thoughthecommoditymaybebroughttomarket，itcanaffordnorenttothelandlord.Whetherthepriceisorisnotmoredependsuponthedemand.\"
[Smith，I，p.132]
\"Rent，itistobeobserved，therefore，entersintothecompositionofthepriceofcommoditiesinadifferentwayfromwagesandprofit.Highorlowwagesandprofitarethecausesofhighorlowprices;highorlowrentistheeffectofit.\"
[Smith，I，p.132]Amongtheproductswhichalwaysyieldarentisfood.
\"Asmen，likeallotheranimals，naturallymultiplyinproportionthemeansofsubsistence，foodisalways，moreorless，indemand.
Itcanalwayspurchaseorcommandagreaterorsmallerquantityoflabor，andsomebodycanalwaysbefoundwhoiswillingtodosomethinginordertoobtainit.Thequantityoflabor，indeed，whichitcanpurchaseisnotalwaysequaltowhatitcouldmaintain，ifmanagedinthemosteconomicalmanner，onaccountofthehighwageswhicharesometimesgiventolabor.Butitcanalwayspurchasesuchaquantityoflaborasitcanmaintain，accordingtotherateatwhichthatsortoflaboriscommonlymaintainedintheneighborhood.
\"Butland，inalmostanysituation，producesagreaterquantityoffoodthanwhatissufficienttomaintainallthelabornecessaryforbringingittomarketinthemostliberalwayinwhichthatlaborisevermaintained.Thesurplus，too，isalwaysmorethansufficienttoreplacethestockwhichemployedthatlabor，togetherwithitsprofits.Something，therefore，alwaysremainsforarenttothelandlord.\"
[Smith，I，p.132—3]
\"Foodis，inthismanner，notonlytheoriginalsourceofrent，buteveryotherpartoftheproduceoflandwhichafterwardsaffordsrentderivesthatpartofitsvaluefromtheimprovementofthepowersoflaborinproducingfoodbymeansoftheimprovementandcultivationofland.\"
[Smith，I，p.150]
\"Humanfoodseemstobetheonlyproduceoflandwhichalwaysandnecessarilyaffordsarenttothelandlord.\"
[Smith，I，p.147]
\"Countriesarepopulousnotinproportiontothenumberofpeoplewhomtheirproducecanclotheandlodge，butinproportiontothatofthosewhomitcanfeed.\"
[Smith，I，p.149]\"Afterfood，clothing，andlodging，arethetwogreatwantsofmankind.\"
[Smith，I，p.147]Theygenerallyyieldarent，butnotnecessarily.
Letusnowseeshowthelandlordexploitseverythingwhichistothebenefitofsociety.
（1）Therentoflandincreaseswithpopulation.
（2）WehavealreadylearntfromSayhowgroundrentriseswithrailways，etc.，andwiththeimprovement，security，andmultiplicationofthemeansofcommunication.
（3）\"everyimprovementinthecircumstancesofthesocietytendseitherdirectlyorindirectlytoraisetherealrentofland，toincreasetherealwealthofthelandlord，hispowerofpurchasingthelabor，ortheproduceofthelaborofotherpeople.
\"Theextensionofimprovementandcultivationtendstoraiseitdirectly.Thelandlord’sshareoftheproducenecessarilyincreaseswithanincreaseoftheproduce.
\"Thatriseintherealpriceofthosepartsoftherudeproduceoflandtheriseinthepriceofcattle，forexample，tendstootoraisetherentoflanddirectly，andinastillgreaterproportion.Therealvalueofthelandlord’sshare，hisrealcommandofthelaborofotherpeople，notonlyriseswiththerealvalueoftheproduce，buttheproportionofhissharetothewholeproduceriseswithit.Thatproduce，aftertheriseinitsrealprice，requiresnomorelabortocollectitthanbefore.Asmallerproportionofitwill，therefore，besufficienttoreplace，withtheordinaryprofit，thestockwhichemploysthatlabor.Agreaterproportionofitmust，consequently，belongtothelandlord.\"
[Smith，I，pp.228—29]Thegreaterthedemandforrawproductsandtheconsequentriseintheirvaluemaypartlybearesultoftheincreaseinpopulationandthegrowthoftheirneeds.Buteverynewinventionandeverynewapplicationinmanufactureofarawmaterialwhichwaspreviouslynotusedatalloronlyusedrarely，makesforanincreaseinthegroundrent.Forexample，therentofcoal—minesroseenormouslywhenrailways，steamships，etc.，wereintroduced.
Besidesthisadvantagewhichthelandlordderivesfrommanufacture，discoveries，andlabor，thereisanotherthatweshallseepresently.
（4）\"Allthoseimprovementsintheproductivepowersoflabor，whichtenddirectlytoreducetherealpriceofmanufactures，tendindirectlytoraisetherealrentofland.Thelandlordexchangesthatpartofhisrudeproduce，whichisoverandabovehisownconsumption，orwhatcomestothesamething，thepriceofthatpartofit，formanufacturedproduce.
Whateverreducestherealpriceofthelatter，raisesthatoftheformer.Anequalopportunityoftheformerbecomestherebyequivalenttoagreaterquantityofthelatter;andthelandlordisenabledtopurchaseagreaterquantityoftheconveniences，ornaments，orluxuries，whichhehasoccassionfor.\"
[Smith，I，pp.228—29]Butitisfoolishtoconclude，asSmithdoes，thatsincethelandlordexploitseverythingwhichisofbenefittosociety，theinterestofthelandlordisalwaysidenticalwiththatofsociety.Intheeconomicsystem，underwhichtheruleofprivateproperty，theinterestwhichanyindividualhasinsocietyisininverseproportiontotheinterestwhichsocietyhasinhim，justastheinterestofthemoneylenderinthespendthriftisnotatallidenticalwiththeinterestofthespendthrift.
Wementiononlyinpassingthelandlord’sobsessionwithmonopolyagainstthelandedpropertyofforeigncountries，whichisthereason，forexample，forthecornlaws.Weshallsimilarlypassovermediaevalserfdom，slaveryinthecoloniesandthedistressoftheruralpopulation——theday—laborers——inGreatBritain.Letusconfineourselvestothepropositionsofpoliticaleconomyitself.
（1）Thelandlord’sinterestinthewell—beingofsocietymeans，accordingtotheprinciplesofpoliticaleconomy，thatheisinterestedinthegrowthofitspopulationanditsproductionandtheincreaseofitsneeds，inaword，intheincreaseofwealth;andtheincreaseofwealthis，ifourpreviousobservationsarecorrect，identicalwiththegrowthofmiseryandslavery.Therelationshipofrisingrentsandrisingmiseryisoneexampleofthelandlord’sinterestinsociety，forariseinhouserentalsomeansariseingroundrent——theinterestonthelandonwhichthehousestands.
（2）Accordingtothepoliticaleconomiststhemselves，theinterestofthelandlordisfiercelyopposedtothatofthetenant，andthereforeofaconsiderablesectionofsociety.
（3）Thelandlordisinapositiontodemandmorerentfromthetenantthelesswagesthetenantpaysout，andthemorerentthelandlorddemandsthefurtherthetenantpushesdownthewages.Forthisreason，thelandlord’sinterestisjustasopposedtothatofthefarmlaborerasthemanufacturer’sistothatoftheworkers.Itlikewisepusheswagesdowntoaminimum.
（4）Sincearealreductioninthepriceofmanufacturedproductsputsuptherentofland，thelandownerhasadirectinterestindepressingthewagesofthefactoryworker，incompetitionamongthecapitalists，inoverproductionandinallthemiseryoccassionedbyindustry.
（5）Sotheinterestofthelandowner，farfrombeingidenticalwiththeinterestofsociety，isfiercelyopposedtotheinterestsofthetenants，thefarmlaborers，thefactoryworkers，andthecapitalists.But，asaresultofcompetition，theinterestofonelandownerisnotevenidenticalwiththatofanother.Weshallnowtakealookatcompetition.
Generallyspeaking，largelandedpropertyandsmalllandedpropertyareinthesamerelationtooneanotheraslargeandsmallcapital.Inaddition，however，therearespecialcircumstanceswhichlead，withoutfail，totheaccumulationoflargelandedpropertyandtheswallowingupofsmallproperties.
（1）Nowheredoesthenumberofworkersandtheamountofequipmentdeclinesogreatlyinproportiontothesizeofthestockasinlandedproperty.Similarly，nowheredoesthepossibilityofmany—sidedexploitation，thesavingofproportioncostsandthejudiciousdivisionoflaborincreasemoreinproportiontothatstockthaninthissphere.
Whateverthesizeoftheplot，thereisacertainminimumoftoolsrequired——aplough，asaw，etc.——belowwhichitisimpossibletogo，whereasthereisnosuchlowermostlimittothesizeoftheproperty.
（2）Largelandedpropertyaccumulatedforitselftheinterestonthecapitalwhichthetenanthasinvestedintheimprovementoftheland.Smalllandedpropertymustemployitsowncapital.Theentireprofitonthiscapitalislosttotheinvestor.
（3）Whileeverysocialimprovementbenefitsthelargelandedproperty，itharmsthesmallone，sinceitmakesanincreasinglylargeamountofreadymoneynecessary.
（4）Therearetwofurtherimportantlawsofthiscompetitiontobeconsidered：
（a）\"therentofthecultivatedland，ofwhichtheproduceishumanfood，regulatestherentofthegreaterpartoftheothercultivatedland.\"
[Smith，I，p.144]Inthelongrun，onlythelargeestatecanproducesourcesoffoodsuchascattle，etc.Itis，therefore，inapositiontoregulatetherentofotherlandandforceitdowntoaminimum.
Thesmalllandownerwhoworksonhisownaccountis，therefore，inthesamerelationtothebiglandownerasthecraftsmanwhoownshisowntoolsistothefactoryowner.Thesmallestatehasbecomeameretool.
Groundrentdisappearsentirelyforthesmalllandowner;atthemost，thereremainstohimtheinterestonhiscapitalandthewagesofhislabor，forgroundrentcanbeforcedsolowbycompetitionthatitbecomesnothingmorethantheinterestoncapitalnotinvestedbytheownerhimself.
（b）Furthermore，wehavealreadyseenthatgivenequalfertilityandequallyeffectiveexploitationoflands，mines，andfisheries，theproduceisinproportiontotheextentofcapitalemployed.Hence，thevictoryofthelargelandowner.Similarly，whereequalamountsofcapitalareinvested，theproduceisinproportiontothedegreeoffertility.
Thatistosay，wherecapitalsareequal，victorygoestotheownerofthemorefertileland.
（c）\"Amineofanykindmaybesaidtobeeitherfertileorbarren，accordingasthequantityofmineralwhichcanbebroughtfromitbyacertainquantityoflaborisgreaterorlessthanwhatcanbebroughtbyanequalquantityfromthegreaterpartofotherminesofthesamekind.\"
[Smith，I，p.151]
\"Themostfertilecoal—mine，too，regulatesthepriceofcoalsatalltheotherminesinitsneighborhood.Boththeproprietorandtheundertakeroftheworkfind，theonethathecangetagreaterrent，theotherthathecangetagreaterprofitbysomewhatundersellingalltheirneighbors.
Theirneighborsaresoonobligedtosellatthesameprice，thoughtheycannotsowellaffordit，andthoughitalwaysdiminishes，andsometimestakesawayaltogetherboththeirrentandtheirprofit.Someworksareabandonedaltogether;
otherscanaffordnorent，andcanbewroughtonlybytheproprietor.\"
[Smith，I，pp.152—3]
\"AfterthediscoveroftheminesofPeru，thesilver—minesofEuropewere，thegreaterpartofthem，abandoned
Thiswasthecase，too，withtheancientminesofPeru，afterthediscoveryofthoseofPotosi.\"
[Smith，I，p.154]WhatSmithsayshereofminesismore—or—lesstrueoflandedpropertyingeneral.
（d）\"Theordinarymarketpriceofland，itistobeobserved，dependseverywhereupontheordinarymarketrateofinterestiftherentoflandshouldfallshortoftheinterestofmoneybyagreaterdifference，nobodywouldbuytheland，whichwouldsoonreduceitsordinaryprice.Onthecontrary，iftheadvantagesshouldmuchmorethancompensatethedifference，everybodywouldbuytheland，whichwouldsoonraiseitsordinaryprice.\"
[Smith，I，p.320]Iffollowsfromthisrelationbetweengroundrentandinterestonmoneythatgroundrentmustcontinuetofalluntileventuallyonlytherichestpeoplecanaffordtolivefromit.Thismeansanincreaseincompetitionbetweenthoselandownerswhodonotleaseouttheirland.Someofthemareruined.Thereisonceagainanaccumulationoflargelandedproperty.
Thiscompetitionhasthefurtherconsequencethatalargepartoflandedpropertyfallsintothehandsofthecapitalists;thus，thecapitalistbecomeslandowners，justasthesmallerlandownersare，ingeneral，nothingmorethancapitalists.Inthisway，apartoflargelandedpropertybecomesindustrial.
So，thefinalconsequenceoftheabolitionofthedistinctionbetweencapitalistandlandowner——whichmeansthat，ingeneral，thereremainonlytwoclassesinthepopulation：theworkingclassandthecapitalistclass.Thissellingoffoflandedproperty，andtransformationofsuchpropertyintoacommodity，marksthefinalcollapseoftheoldaristocracyandthefinalvictoryofthearistocracyofmoney.
（1）Werefusetojoininthesentimentaltearswhichromanticismshedsonthisaccount.Romanticismalwaysconfusestheinfamyofsellingoffthelandwiththeentirelyreasonableand，withinthesystemofprivateproperty，inevitableanddesirableconsequenceofthesellingoffofprivatepropertyinland.Inthefirstplace，feudallandedpropertyisalreadyinessencelandwhichhasbeensoldoff，landwhichhasbeenestrangedfrommanandnowconfrontshimintheshapeofahandfulofgreatlords.
Infeudallandownership，wealreadyfindthedominationoftheearthasofanalienpowerovermen.Theserfisanappurtenanceoftheland.Similarly，theheirthroughprimogeniture，thefirstbornson，belongstotheland.Itinheritshim.Theruleofprivatepropertybeginswithpropertyinland，whichisitsbasis.Butinthesystemoffeudallandownership，thelordatleastappearstobekingoftheland.Inthesameway，thereisstilltheappearanceofarelationshipbetweenownerandlandwhichisbasedonsomethingmoreintimatethanmerematerialwealth.
Thelandisindividualizedwithitslord，itacquireshisstatus，itisbaronialorducalwithhim，hashisprivileges，hisjurisdiction，hispoliticalposition，etc.Itappearsastheinorganicbodyofitslord.Hencetheproverb，nulleterresansmaitre[\"Nolandwithoutitsmaster\"]，whichexpressestheblendingofnobilityandlandedproperty.Inthesameway，theruleoflandedpropertydoesnotappeardirectlyastheruleofmerecapital.Itsrelationshiptothosedependentuponitismorelikethatofafatherland.Itisasortofnarrowpersonality.
Inthesameway，feudallandedpropertygivesitsnametoitslord，asdoesakingdomtoitsking.Hisfamilyhistory，thehistoryofhishouse，etc.——allthisindividualizeshisestateforhim，andformallyturnsitintohishouse，intoaperson.Similarly，theworkersontheestatearenotinthepositionofday—laborers;rather，theyarepartlythepropertyofthelandowner，asareserfs，andtheyarepartlylinkedtohimthrougharelationshipbasedonrespect，submissiveness，andduty.
Hisrelationtothemisthereforedirectlypolitical，andevenhasanagreeableaspect.Customs，character，etc.，varyfromoneestatetoanotherandappeartobeonewiththeirparticularstretchofland;later，however，itisonlyaman’spurse，andnothischaracterorindividuality，whichtieshimtotheland.Finally，thefeudallandownermakesnoattempttoextractthemaximumprofitfromhisproperty.Rather，heconsumeswhatisthereandleavestheharvestingofittohisserfsandtenants.Suchisthearistocraticconditionoflandownership，whichshedsaromanticgloryonitslords.
Itisinevitablethatthisappearanceshouldbeabolishedandthatlandedproperty，whichistherootofprivateproperty，shouldbedrawnentirelyintotheorbitofprivatepropertyandbecomeacommodity;
thattheruleofthepropertyownershouldappearasthenakedruleofprivateproperty，ofcapital，divestedofallpoliticaltincture;thattherelationshipbetweenpropertyownerandworkershouldbereducedtotheeconomicrelationshipbetweenthepropertyownerandhispropertyshouldcometoanend，andthatthepropertyitselfshouldbecomepurelymaterialwealth;thatthemarriageofinterestwiththelandshouldtakeoverfromthemarriageofhonor，andthatland，likeman，shouldsinktothelevelofavenalobject.Itisinevitablethattherootoflandedproperty——
sordidself—interest——shouldalsomanifestitselfinitscynicalform.
Itisinevitablethatimmovablemonopolyshouldbecomemobileandrestlessmonopoly，competition;andthattheidleemploymentoftheproductsofthesweatandbloodofotherpeopleshouldbecomeabriskcommerceinthesame.Finally，itisinevitableundertheseconditionsofcompetitionthatlandedproperty，intheformofcapital，shouldmanifestitsdominationbothovertheworkingclassandoverthepropertyownersthemselves，inasmuchasthelawsofthemovementofcapitalareeitherruiningorraisingthem.
Inthisway，themediaevalsayingnulleterresansseigneurgiveswaytothemodernsayingl’argentn’apasdemaitre[\"Moneyknowsnomaster\"]，whichisanexpressionofthecompletedominationofdeadmatterovermen.
（2）Thefollowingobservationscanbemadeinconnectionwiththecontroversyoverwhetherornottodivideuplandedproperty.
Thedivisionoflandedpropertynegatesthelarge—scalemonopolyoflandedproperty，abolishesit，butonlybygeneralizingit.Itdoesnotabolishthebasisofmonopoly，whichisprivateproperty.Itattackstheexistence，butnottheessence，ofmonopoly.Theconsequenceisthatitfallsfoulofthelawsofprivateproperty.Fortodivideuplandedpropertycorrespondstothemovementofcompetitionintheindustrialsphere.
Apartfromtheeconomicdisadvantagesofthisdivisionoftheinstrumentsoflaborandseparationoflabor（nottobeconfusedwiththedivisionoflabor;thisisnotacaseofdividingupworkamonganumberofindividuals，butofeachindividualdoingthesamework;itisamultiplicationofthesamework），thisdivisionoftheland，likecompetitioninindustry，inevitablyleadstofurtheraccumulation.
Sowhereverlandedpropertyisdividedup，monopolywillinevitablyreappearinanevenmorerepulsiveform——unless，thatis，thedivisionoflandedpropertyitselfisnegatedorabolished.Thisdoesnotmeanareturntofeudalproperty，buttheabolition[Aufhebung]ofprivatepropertyislandaltogether.Thefirststepintheabolitionofmonopolyisalwaystogeneralizeandextenditsexistence.Theabolitionofmonopoly，whenithasreacheditsbroadestandmostcomprehensiveexistence，isitscompletedestruction.Association，whenappliedtotheland，retainsthebenefitsoflargelandedpropertyfromaneconomicpointofviewandrealizesforthefirsttimethetendencyinherentinthedivisionofland，namelyequality.
Atthesametime，associationrestoresman’sintimatelinkstothelandinarationalway，nolongermediatedbyserfdom，lordship，andanimbecilemystiqueofproperty.Thisisbecausetheearthceasestobeanobjectofbarter，andthroughfreelaborandfreeemploymentonceagainbecomesauthentic，personalpropertyforman.Onegreatadvantageofthedivisionofthelandisthatitsmasses，whoarenolongerpreparedtotolerateservitude，aredestroyedbypropertyinadifferentwayfromthoseinindustry.
Asforlargelandedproperty，itsapologistshavealwayssophisticallyidentifiedtheeconomicadvantagesinherentinlarge—scaleagriculturewithlargelandedproperty，asiftheseadvantageswouldnotontheonehandattaintheirfullestdegreeofdevelopmentandontheotherhandbecomesociallyusefulforthefirsttimeoncepropertyabolished.Similarly，theyhaveattackedthetradingspiritofthesmalllandowners，asiflarge—scalelandownership，eveninitsfeudalform，didnotalreadycontainwithinittheelementsofbarter——nottomentionthemodernEnglishform，inwhichthefeudalismofthelandowneriscombinedwiththehucksteringandtheindustryofthetenantfarmer.
Justaslarge—scalelandedpropertycanreturnthereproachofmonopolymadeagainstitbytheadvocatedofdivisionoftheland，forthedivisionofthelandisalsobasedonthemonopolyofprivateproperty，socantheadvocatesofdivisionreturnthereproachofpartition，forpartitionofthelandalsoexists——thoughinarigid，ossifiedform——
onthelargeestates.Indeed，divisionistheuniversalbasisofprivateproperty.Besides，asthedivisionoflandedpropertyleadsoncemoretolargelandedpropertyintheformofcapitalwealth，feudallandedpropertyinevitablyadvancestowardsdivisionoratleastfallsintothehandsofthecapitalists，howevermuchitmighttwistandturn.
Forlarge—scalelandedproperty，asinEngland，drivestheoverwhelmingmajorityofthepopulationintothearmsofindustryandreducesitsownworkerstototalmisery.Inthisway，itcreatesandincreasesthepowerofitsenemy，capitalandindustry，bydrivingthepoorandanentirerangeofactivitiesovertotheotherside.Itmakesthemajorityofthecountryindustrial，andhenceantagonistictolandedproperty.Whereindustryhasacquiredgreatpower，asinEngland，itgraduallyforceslargelandedpropertytogiveupitsmonopolyagainstforeigncountriesandobligesittocompetewithforeignlandedproperty.Forundertheruleofindustry，landedpropertycouldmaintainitsfeudalproportionsonlybymeansofamonopolyagainstforeigncountries，soastoprotectitselfagainsttheuniversallawsoftradewhichcontradictitsfeudalnature.Onceexposedtocompetition，itisforcedtoobeythelawsofcompetition，justlikeanyothercommoditywhichissubjecttothem.Ittoobeginstofluctuate，toincreaseanddiminish，toflyfromonehandintoanother，andnolawisanylongercapableofkeepingitinafewpredestinedhands，or，atanyevent，surrendertothepoweroftheindustrialcapitalists.
Finally，largelandedproperty，whichhasbeenforciblypreservedinthiswayandwhichhasgivenrisealongsideitselftoanextensiveindustry，leadsmorerapidlytoacrisisthandoesthedivisionoflandedproperty，alongsidewhichthepowerofindustryinvariablytakessecondplace.
ItisclearfromthecaseofEnglandthatlargelandedpropertyhascastoffitsfeudalcharacterandassumedanindustrialcharacterinsofarasitwantstomakeasmuchmoneyaspossible.Ityieldstheownerthebiggestpossiblerentandthetenantthebiggestpossibleprofitonhiscapital.Asaconsequence，theagriculturalworkershavealreadybeenreducedtoaminimum，andtheclassoftenantfarmersalreadyrepresentswithinlandedpropertythemightofindustryandcapital.Asaresultofforeigncompetition，groundrentmoreorlessceasestobeanindependentsourceofincome.Alargepartofthelandownersisforcedtotakeoverfromthetenants，someofwhomareconsequentlyreducedtotheproletariat.Ontheotherhand，manytenantswilltakepossessionoflandedproperty;forthebiglandowners，whohavegiventhemselvesupforthemostparttosquanderingtheircomfortablerevenueandaregenerallynotcapableoflarge—scaleagriculturalmanagement，inmanycaseshaveneitherthecapitalnortheabilitytoexploittheland.Therefore，asectionofthebiglandownersisalsoruined.Eventuallywages，whichhavealreadybeenreducedtoaminimum，mustbereducedevenfurtherinordertomeetthenewcompetition，Thisthenleadsnecessarilytorevolution.
Landedpropertyhadtodevelopineachofthesetwoways，inordertoexperienceinbothofthemitsnecessarydecline;justasindustryhadtoruinitselfbothintheformofmonopolyandintheformofcompetitionbeforeitcouldbelieveinman.
ESTRANGEDLABOR
Wehavestartedoutfromthepremisesofpoliticaleconomy.Wehaveaccepteditslanguageanditslaws.Wepresupposedprivateproperty;theseparationoflabor，capital，andland，andlikewiseofwages，profit，andcapital;thedivisionoflabor;competition;theconceptionofexchangevalue，etc.Frompoliticaleconomyitself，usingitsownwords，wehaveshownthattheworkersinkstothelevelofacommodity，andmoreoverthemostwretchedcommodityofall;thatthemiseryoftheworkerisininverseproportiontothepowerandvolumeofhisproduction;thatthenecessaryconsequenceofcompetitionistheaccumulationofcapitalinafewhandsandhencetherestorationofmonopolyinamoreterribleform;
andthat，finally，thedistinctionbetweencapitalistandlandlord，betweenagriculturalworkerandindustrialworker，disappearsandthewholeofsocietymustsplitintothetwoclassesofpropertyownersandpropertylessworkers.
Politicaleconomyproceedsfromthefactofprivateproperty.
Itdoesnotexplainit.Itgraspsthematerialprocessofprivateproperty，theprocessthroughwhichitactuallypasses，ingeneralandabstractformulaewhichitthentakesaslaws.ItdoesnotComprehendtheselaws——i.e.，itdoesnotshowhowtheyarisefromthenatureofprivateproperty.Politicaleconomyfailstoexplainthereasonforthedivisionbetweenlaborandcapital.Forexample，whenitdefinestherelationofwagestoprofit，ittakestheinterestsofthecapitalistsasthebasisofitsanalysis——i.e.，itassumeswhatitissupposedtoexplain.Similarly，competitionisfrequentlybroughtintotheargumentandexplainedintermsofexternalcircumstances.Politicaleconomyteachesusnothingabouttheextenttowhichtheseexternalandapparentlyaccidentalcircumstancesareonlytheexpressionofanecessarydevelopment.Wehaveseenhowexchangeitselfappearstopoliticaleconomyasanaccidentalfact.Theonlywheelswhichpoliticaleconomysetsinmotionaregreed，andthewaroftheavaricious——Competition.
Preciselybecausepoliticaleconomyfailstograsptheinterconnectionswithinthemovement，itwaspossibletooppose，forexample，thedoctrineofcompetitiontothedoctrineofmonopoly，thedoctrineofcraftfreedomtothedoctrineoftheguild，andthedoctrineofthedivisionoflandedpropertytothedoctrineofthegreatestate;forcompetition，craftfreedom，anddivisionoflandedpropertyweredevelopedandconceivedonlyasaccidental，deliberate，violentconsequencesofmonopoly，oftheguilds，andoffeudalproperty，andnotastheirnecessary，inevitable，andnaturalconsequences.
Wenowhavetograsptheessentialconnectionbetweenprivateproperty，greed，theseparationoflabor，capitalandlandedproperty，exchangeandcompetition，valueandthedevaluation[Entwertung]
ofman，monopoly，andcompetition，etc.——theconnectionbetweenthisentiresystemofestrangement[Entfremdung]andthemoneysystem.
Wemustavoidrepeatingthemistakeofthepoliticaleconomist，whobaseshisexplanationsonsomeimaginaryprimordialcondition.Suchaprimordialconditionexplainsnothing.Itsimplypushesthequestionintothegreyandnebulousdistance.Itassumesasfactsandeventswhatitissupposedtodeduce——namely，thenecessaryrelationshipsbetweentwothings，between，forexample，thedivisionoflaborandexchange.Similarly，theologyexplainstheoriginofevilbythefallofMan——i.e.，itassumesasafactintheformofhistorywhatitshouldexplain.
Weshallstartoutfromapresent—dayeconomicfact.
Theworkerbecomespoorerthemorewealthheproduces，themorehisproductionincreasesinpowerandextent.Theworkerbecomesanevercheapercommoditythemorecommoditiesheproduces.Thedevaluationofthehumanworldgrowsindirectproportiontotheincreaseinvalueoftheworldofthings.Labornotonlyproducescommodities;italsoproducesitselfandtheworkersasacommodityanditdoessointhesameproportioninwhichitproducescommoditiesingeneral.
Thisfactsimplymeansthattheobjectthatlaborproduces，itproduct，standsopposedtoitassomethingalien，asapowerindependentoftheproducer.Theproductoflaborislaborembodiedandmadematerialinanobject，itistheobjectificationoflabor.Therealizationoflaborisitsobjectification.Inthesphereofpoliticaleconomy，thisrealizationoflaborappearsasalossofrealityfortheworker，objectificationaslossofandbondagetotheobject，andappropriationasestrangement，asalienation[Entausserung].
Somuchdoestherealizationoflaborappearaslossofrealitythattheworkerloseshisrealitytothepointofdyingofstarvation.
Somuchdoesobjectificationappearaslossoftheobjectthattheworkerisrobbedoftheobjectsheneedsmostnotonlyforlifebutalsoforwork.
Workitselfbecomesanobjectwhichhecanonlyobtainthroughanenormouseffortandwithspasmodicinterruptions.Somuchdoestheappropriationoftheobjectappearasestrangementthatthemoreobjectstheworkerproducesthefewercanhepossessandthemorehefallsunderthedominationofhisproduct，ofcapital.
Alltheseconsequencesarecontainedinthischaracteristic，thattheworkersisrelatedtotheproductoflaborastoanalienobject.
Foritisclearthat，accordingtothispremise，themoretheworkerexertshimselfinhiswork，themorepowerfulthealien，objectiveworldbecomeswhichhebringsintobeingoveragainsthimself，thepoorerheandhisinnerworldbecome，andthelesstheybelongtohim.Itisthesameinreligion.ThemoremanputsintoGod，thelessheretainswithinhimself.
Theworkerplaceshislifeintheobject;butnowitnolongerbelongstohim，buttotheobject.Thegreaterhisactivity，therefore，thefewerobjectstheworkerpossesses.Whattheproductofhislaboris，heisnot.