第3章

TransitionfromRyotRents。AnotherkindofpeasantrentprevailsinAsia,andespeciallyinIndia,called,asIhavesaid,Ryotrents;Ryotbeingthenameforthecultivator。Theserentsareaproducerent,paidtothesovereignasproprietorofthesoil。MrJonessays(p。138):\"Thereisnothingmischievousindirecteffectofryotrents。Theyareusuallymoderate;andwhenrestrictedtoatenth,or

evenasixth,fifth,orfourthoftheproduce,ifcollectedpeacefullyandfairly,theybecomeaspeciesofland—tax,andleave

thetenantabeneficialhereditaryestate。Itisfromtheirindirecteffectstherefore,andfromtheformofgovernmentinwhich

theyoriginate,andwhichtheyservetoperpetuate,thattheyarefullofevil,andarefoundinpracticemorehopelesslydestructiveofthepropertyandprogressofthepeoplethananyformoftherelationoflandlordandtenantknowntous。\"Theproprietaryrightsofthesovereign,andhislargeandpracticallyindefiniteinterestintheproduce,preventtheformation

ofanyreallyindependentbodyontimeland。Bythedistributionoftherents,whichhisterritoryproduces,themonarch

maintainsthemostinfluentialportionoftheremainingpopulationinthecharacterofcivilormilitaryofficers。Thereremain

onlytheinhabitantsofthetownstointerposeachecktohispower;butthemajorityofthesearefedbytheexpenditureof

thesovereignorhisservants。Weshallhaveafitteropportunitytopointouthowcompletelytheprosperityorratherthe

existenceofthetownsofAsia,proceedsfromthelocalexpenditureofthegovernment。`Asthecitizensarethusdestitute

fromtheirpositionofrealstrength,sotheAsiaticsovereigns,havingnobodyofpowerfulprivilegedlandedproprietorsto

contendwith,havenothadthemotiveswhichtheEuropeanmonarchshad:tonurseandfoster。thetownsintoenginesof

political,influence,andthecitizensareproverbiallythemosthelplessandprostrateoftheslavesofAsia。Thereexists,

therefore,nothinginthesocietybeneathhimwhichcanmodifythepowerofasovereignwhoisthesupremeproprietorofa

territorycultivatedbyapopulationofryotpeasants。Allthatthereisofrealstrengthinsuchapopulation,lookstohimas

thesolesource,notmerelyofprotection,butofsubsistence;heisbyhispositionandnecessarilyadespot。Buttheresultsof

Asiaticdespotismhaveeverbeenthesame:whileitisstrongitisdelegated,anditspowerabusedbyitsagents;whenfeeble

anddeclining,thatpowerisviolentlysharedbyitsinferiors,anditsstolenauthorityyetmoreabused。Initsstrengthandin

itsweaknessitisalikedestructiveoftheindustryandwealthofitssubjects,andalltheartsofpeace;anditisthiswhichmakesthatpeculiarsystemofrentsparticularlyobjectionableandcalamitoustothecountriesinwhich,itprevails。\"Theland—taxinthissystemisinpracticearbitrary,andthenceoppressive。MrMillrelates(。379)howtheEnglishrulers

whentheysucceededtothepowersoftheprevioussovereignsattemptedtoremedythisoppression。Theywishedtofounda

classofgreatlandlords,thatIndiamightprosperasEnglandhasprosperedunderherlandlords。Forthispurposethey

pitcheduponasetoftax—gathererscalledZemindars。Butthisplanseemstohavefailed。Itseemsnow,saysMrJones(p。1

18),tobegenerallyadmittedthattheclaimsoftheZemindarswereoverrated,andthatifsomethinglesshadbeendonefor

themandsomethingmoreforthesecurityandindependenceoftheRyots,thesettlement,withoutbeinglessjustorgenerous,wouldhavebeenmoreexpedient。ButthesystemofcultivationinIndiaseemsonthepointofundergoingagreatchangefromcausesextraneoustotheryot

system。TheGovernor—Generalhasinstituted,itisrecentlystated,systemofgrantsoftheunoccupiedland,ontermswhich

makethegranteesindependentcultivators。Theunoccupiedlandiswideandfertile,andthusaraceofcultivatorsmayarise

whoseconditionwillbefreefromtheevilsoftheryottenure。ThishoweverbelongstothePoliticalEconomyoftheFuture。

TransitionfromCottierRents。

Inowtakeanothercase。IrelandiscultivatedinagreatmeasurebyCottiers。MrMillhasputtheseinthesamechapterastheryotsofIndia。AtthisI

marvelmuch;forhehashimselfpointedoutthebroaddifferenceswhichexistbetweenthetwosystems。Hetrulystatesthat

inIndiathepaymentshavebeenregulatedbycustom;inIrelandbycompetition;avastdifference,ofwhichhehimselfhas

forciblypointedouttheimportance。AddtothisthatinIndiatheownerofthelandisthesovereign;inIrelandaprivate

person。Andwemayaddfurtherwhatisalsoaveryimportantfeaturethattherentiscontractedtobepaidinmoney,notin

produce;andthereforedoesnotvarywiththeamountofthecrops。Andthislastcircumstanceespeciallyhasgreatimportanceintheprogressofthecountryinwhichthesesystemsarefound。Ryotrentshavenotendencytochange;theyhaveexistedinIndiafromthetimeoftheGreeks:probablymuchlonger。TheCottiers’rentsofIrelandofferremarkablefacilitiesforchange;MrJonessays(p。152):\"Theprincipaladvantagethecottierderivesfromhisformoftenureisthegreatfacilitywithwhich,whencircumstancesare

favourabletohim,hechangesaltogetherhisconditioninsociety。Inserf,mé;tayer,orryotcountriesextensivechangesmust

takeplaceinthewholeframeworkofsocietybeforethepeasantsbecomecapitalistsandindependentfarmers。Theserfhas

manystagestogothroughbeforehearrivesatthispoint,andwehaveseenhowharditistoadvanceonestep。Themé;tayer

toomustbecometheownerofthestockonhisfarm,andbeabletoundertaketopayamoney—rent。Bothchangestakeplace

slowlyandwithdifficulty,especiallythelast,thesubstitutionofmoney—rents,whichsupposesaconsiderableprevious

improvementintheinternalcommerceofthenation,andisordinarilytheresult,notthecommencementofimprovementin

theconditionofthecultivators。Butthecottierisalreadytheownerofhisownstock;heexistsinasocietyinwhichthe

powerofpayingmoney—rentsisalreadyestablished。Ifhethrivesinhisoccupation,thereisnothingtopreventhisenlarging

hisholding,increasinghisstock,andbecomingacapitalist,andafarmerinthepropersenseoftheword。Itispleasingto

heartheresidentIrishlandlords,whohavetakensomepainsandmadesomesacrificestoimprovethecharacterand

conditionoftheirtenantry,bearingtheirtestimonytothisfact,andstatingtherapiditywithwhichsomeofthecottiershave,

undertheirauspices,acquiredstockandbecomesmallfarmers。MostofthecountriesoccupiedbyMé;tayers,Serfs,and

Ryots,willprobablycontainasimilarraceoftenantryforsomeages。Iftheeventsofthelasthalfcenturyarefavourableto

Ireland,herCottiersarelikelytodisappear,andtobemergedintoaverydifferentraceofcultivators。Thisfacilityforgliding

outoftheiractualconditiontoahigherandabetter,isanadvantage,andaverygreatadvantage,ofthecottierovertheothersystemsofpeasantrents,andatonesforsomeofitsgloomierfeatures。\"Thisauspiciousanticipation。hasbeenwonderfullyverifiedsinceMrJoneswrote。Circumstancesintherecenthistoryof

Ireland,mostdisastrousintheirfirstaspect,havedonemuchtobreakupthesystemofcottiertenureandtointroducea

betterkindofcultivation。TheFamineandtheExodus,thePoorLawandtheEncumberedEstateAct,haveproduceda

wonderfulchangeintheconditionofIreland。IwillreadfromavaluablearticleintheEdinburghReview,for1857,anaccountofthemannerinwhichthecottiersystemwasaffectedbytheseevents。ThePoorLawhadbeenintroducedintoIrelandin1840:buthadnotbeenbroughtfacetofacewiththeneedsofthepeopletillthefaminein1847。Inthatyearitwasmodifiedsoastoshakethecottiersystem。Ed。Rev。p。110:\"ThePoorLawof1847providedfortheproblemofemancipatingthesoilfromthecottiersystem。The

Actsof1838and1844hadprobablyhadthisobjectinview;fortheyhadchargedtheIrishlandlordswiththeentire

poor—rateinrespectofthesmallerclassofholdings;andthisnaturallytendedtotheconsolidationoffarms。ButtheActof

1847wentmuchfurther;itrefusedreliefaltogethertooccupiersofmorethanaquarterofastatuteacre;andthus,bybasing

therightofpubliccharityupongivingupthelargerportionoftheirland,itforcedofftheIrishcottiersinmassesfromthe

soil,andleftitfreeforanewraceofagriculturists。Thepoorestofthecottiersabandonedtheirbuildingsforthe

workhouses,fromwhich,however,thelargemajorityofthemhavesinceemerged,whilethoseamongthemwhohadstill

anyresidueofproperty,commencedthatstrangeandunparalleledemigration,whichhassentIrishenergiestoahopeful

field,andhasopenedthelandofIrelandforabettersystem。Thelawwhichdidthiswasstern,butitwasnotunjust,andno

onecandenythegoodithasaccomplished。

TheEncumberedEstatesActoperatedinthesamedirection。Ed。Rev。p。116:\"Alawwhich`freedthelandofIrelandfromallchecksonalienation,whichbrokedowntheequitymode

oftransfer,withitsjealousimpedimentstopuisnecreditors,itsfearfuldelays,itsruinousexpense,anditscumbrousand

unsatisfactoryprocedure,andwhich,besides,offeredeverysecuritytopurchasers,wouldnecessarily,underany

circumstanceswhatever,havebroughtagreatmanyestatestothemarket。Butpassingatatimewhentheequitycourtswere

crowdedwithembarrassedestates,whentheruinoccasionedbythefamine,andthepoor—rates,andthepanicresultingfrom

therepealofthecorn—laws,andthelownessofprices,hadmadeallcreditorsonrealpropertyinIrelandextremelyanxious

torealizetheirsecurities,itoperatedtoanextentwellnighinconceivable。Inaperiodoflessthaneightyears,theIrish

EncumberedEstatesCommissionhasdealtwithlandedpropertyrepresentinganetrentalofupwardsof?,450,000sterling,

andcoveringanareaofmorethanfourmilliononehundredthousandacres。ACourtofJustice,sittinginaremotecornerof

Dublin,haspeaceablychangedtheownershipofalargermassoflandthatprobablypassedunderCromwell’sconfiscations。

Ofthevastdistrictbroughtwithinitsgrasp,aboutsix—sevenths,containingthreemillionsfivehundredthousandacres,witha

rentalofonemilliontwohundredandthirtythousandpoundssterling,hasbeensoldandtransferred,leavingaresidueofsix

hundredthousandacresoftheyearlyvalueoftwohundredandtwentythousandpoundssterlingstillundisposedof。The

encumbrancesupontheestatesalreadysold,andwhichhithertohadbeenpentupinthecourtsofequityorleftinthehands

ofruinedinheritorsreachedtheextraordinarysumofthirtysixmillionssterling,orupwardsoftwentylouryears’purchase

uponthenetrental。ThissinglefactshewsthestateoflandedbankruptcythatexistedinIreland,andisanamplejustification

ofthelaw。\"

Andagain,p。119\"ThegooddonetoIrelandbythisimportantstatute,anditsvastresults,arebeyondallquestion。Largetractsofland,which

hithertohadnorealproprietors,whichwereeitherinthehandsofChanceryreceivers,orofinheritorssunkindebt,on

whichaleasecouldnotbemade,norasecuretenurebeobtained,andwhich,accordingly,wereinvariablythereceptaclesof

theworstspecimensofthecottiertenantry,havenowfallenintothehandsofownerswhocanusethemforallthepurposes

ofproperty。OnagreatportionofthesurfaceofIrelandthereisnolongeranimpenetrablebarriertonaturalfanningtenures,

andtothelegitimateconditionsofarealagriculture。Eventhebreakingupofthelargepropertiesintosmallestateshasbeen

ofadvantage;forithastendedtoextendtheareaofthefarmerbyreducingthesizeofprivatedemesnes;ithasstimulated

providentandindustrioushabits,byopeningtheland—markettosmallcapitalists;andprobablyithasconsiderably

encouragedtheinvestmentofmoneyintheimprovementofthesoil。Inaword,agreatbreadthofIrelandhasnowbeenset

free,andissubjectedtomorecivilizinginfluences。Theevidencesofthismostsalutarychangeareperfectlyclearinevery

partofthecountry。Moderatemansions,neatfarmhouses,andgoodfarmbuildings,risingfromamongtrimcornfieldsand

pastures,thetrueproofsofasubstantialagriculturalmiddleclass,arenowtobemetwith,andthatnotunfrequentlyon

estateswhichhadlongbeenmoulderinginChanceryruin。Asregardsthispoint,however,weprefertociteasingleexampletomakinganygeneralstatements。\"Intheyears1852,1853,MrAllanPollok,ofGlasgow,purchasedestatesinthecountyofGalway,undertheEncumbered

Estates。Act,forwhichhegave?30,000。Hehassinceexpended?50,000ontheminfittingthemwithproperappliances

foragriculture。Intheyear1852therewere100acresofgreencropsonhislands,andintheyear1856therewere2000

acresofgreencrops,and3000ofcorn。IftheimprovementseffectedbyotherpurchasersundertheEncumberedEstates

Act,evenremotelyapproachthechangesaccomplishedbyMrPollok,therecanbenodoubtthatthewealthofIrelandwill

beincreasedinanextraordinarydegree。\"

Thegeneralresultsarethusstated:\"TheselawshavewroughtacompleterevolutioninIrishagriculture;havetransferredthesoilfrompaupercottierstoreal

farmers;havecausedanevidentimprovementineveryspeciesofhusbandry;havebroughtcapitalinlargequantitiestoa

hopefulfieldforinvestment;haveplantedinthelandanumeroussmallproprietary,andhavesettledthetrueconditionsof

Irishprosperity。Afewfigureswilldemonstratetheseresults。Intheyear1841,thefarmsinIreland,exceedingthirtyacresin

area,wereintheproportionofseventothehundred;atthecloseof1855theyhadincreasedtomorethan26percent。,and

occupiedupwardsofthree—fourthsofthecountry。Intheyear1841,therewereaboutsixandaquartermillionsofacresout

ofcultivation;intheyear1855onlyfourmillioneighthundredandninetythousand。In1847,727,000acresofIrelandwere

underagreencrop;in1855,thenumberhadnearlydoubled。In1841,thelivestockofIrelandwasvaluedat?9,400,000。In

1855,atthesamerates,ithadreachedthirtythreemillionsandahalf。TheaveragecirculationofallthebanksofIrelandwas

in1850fourmillionsandahalf;atthecloseof1855,ithadalmostincreasedathird。Lastly,whiletheIrishexcisedutiesof

1850,amountedto?,400,000,thoseof1856,are?,600,000。itmay,wethink,bestated,thatsorapidandhappyand

economicalarevolution,soquickatransitionfromasinkingandperilous,toahopefulandflourishinglandedsystem,is

withoutaparallelinhistory。ThefoundationsofIrishprosperityhaveatlengthbeenlaidinreformedmodesofowningandoccupyingthesoil;andtherecanbenodoubtbutthattheywillsupportasuperstructureofgeneralwelfare。\"OneremarkIwillmakeinconcludingthisbriefview。Weliveinaneventfulage。Thatisareflexion。whicheveryoneis

readytomake;everyonereadytoassentto。ButthereisafurtherreflexionsuggestedbywhatIhavebeensaying。Besides

andbeyondtheeventswhichmaketheageappeareventfultocommonobserverswarandpeacerevolutionsofstatesand

dynastiestheriseandfallofkingdomsandempires,republicsandfederationseventswhichshakethegroundwiththeir

earthquake,andfilltheairwiththeirthunder;besideandbeyondthese,thereareeventstakingplace,noiselessandalmost

imperceptibleadvancinglikevegetationoveradesert,orsummeroverthewoodsandfieldseventsoffarmoreconsequence

thanallthatcomeswithconvulsionandtumulteventswhichwillbythepoliticaleconomistofthefutureberegardedasfar

moreimportantthananypoliticaleventshappierthananyrestoration,moregloriousthananyrevolution:theeventsofthe

decayandextinctiontobereplacedbysomethingbetterinshort,theEuthanasiaofMé;tayerRentsinFrance,SerfRentsin

Russia,RyotRentsinIndia,andCottierRentsinIreland。

LECTUREV。

TheDoctrineofRent。ThedoctrineofRentspokenofinthelastLecture,mustnowbemorefullyexplained,asIhavesaid;itmaybebrieflystated

thus:TheRentoflandisthepaymentfortheexcessofthevalueoftheproduceofthebetterlandoverthepoorestcultivatedland:thepoorestbeingthatkindoflandwhichjustpaysforbeingcultivated。LetAbethebestland(bestasbeingmostfertile,nearestthemarket,orforthelikereasons)。Andlettheproduceofitunder

theusualcultivationbe?2peracreperannumontheaverage。

LetBbenextbestland,andletitsproducebe?0peracre;andsupposethisproducejustpaystheexpenseofcultivation。

LetCbestillinferiorland,whichunderthelikecultivationyieldsonly?peracre。ThereforethelandCdoesnotpaytheexpenseofcultivation,andnoonewillwithaviewtoprofit,bestowuponitthe

expenseofcultivation。

ThelandBmaybecultivatedwithaviewtoprofit,byapersonwhocanhaveitrent—free:bytheproprietorforinstance。ThelandAmayl)ecultivatedwithaviewtoprofitbyanyone,payingforitarentof?anacre。Whenhehaspaidthatrent,hisprofitswillstillbetheusualprofitsofstock。ThisisnecessarilytheoriginandmeasureofRent:fortheproprietorofAwillnotallowanyonetocultivateitonlowerterms,sincehecanobtainthoseterms。Apersonwhothusrentslandandcultivatesitwithaviewtoobtainingtheprofitsofhisstock,isaFarmer。TheRentsnow

spokenofareFarmer’sRents。

A:Produce=12

Rent=2

B:Produce=10

Rent=0

C:Produce=8UncultivatedThisdiagrammayrepresentthekindsofland:A,B,Cthedifferentkindsyieldingdifferentvaluesofproduce,in

consequence,ashasbeensaid,ofbeingmorefertile,nearertothemarket,orothercauses。

RecentRiseofRentsinEngland,howproduced?ThemainimportanceoftheDoctrineofRent,isintheviewstowhichitleadsrespectingthecausesandtheeffectsofariseorfallofrents。Supposethatthepriceofcorn(orotherproduceoftheland,)increases,andthattheexpenseofcultivatingthelandremains

thesame。Supposethisincreaseofpricetobeonefourthoftheoriginalprice。

ThenthevalueoftheproduceofAwillbeincreasedby?insteadof12,itwillbe12+3or15。

ThevalueoftheproduceofBwillbeincreasedalsoby?insteadof10itwillbeio+2?or12?Andastheexpenseofcultivationisstillonly10asbefore,therewillbeinthiscase,besidestheordinaryprofitofstock,an

extraprofitof2?whichthefarmerofBcanaffordtopaytotheproprietor;andwhichtheproprietorwilldemandastherentofB。InthiscasethevalueoftheproduceofCwillalsobeincreasedbyone—fourthinsteadof8itwillbe10。AndastheexpenseofcultivatingCwiththeusualprofitsis10,apersoncanaffordtocultivateC,payingnorent。InthiscaseC,whichwasnotcultivatedbefore,iscultivatednowinconsequenceoftheincreasedpriceofcorn。This

increasedpricemaybesupposedtoarisefromtheincreaseddemandoccasionedbyanincreasedpopulation。Theincreased

producearisingfromthecultivationofCwillprovidefortheincreasedpopulation。

Thisnewstateofthingsmayberepresentedbythisdiagram,A:Produce=15

Rent=5

B:Produce=12?

Rent=2?

C:Produce=10

Rent=0。

Inthiscase,Rentsincreaseinconsequenceofcornhavingbecomedearer。MrRicardoassumedthatthiswasthegeneralcase:thatariseofrentsisalwaysaccompaniedbyanincreasedpriceofcorn,

inconsequenceofthenecessityofobtainingcornfrominferiorsoils:asin。theabovecase,inconsequenceoftheincreaseofpopulationitwasnecessarytoobtaincornfromthelandC,aswellasfromthelandAandB。MrRicardoassertedthattheinterestofthelandlord(whichistheriseofrents),isopposedtotheinterestoftheconsumers

ofproduce(whichischeapprices)。

Itwillbemybusinesstoshowthatthispropositionisaltogethererroneous。ThatcausewhichMrRicardoassumesasthegeneralcauseoftheriseofrentsisnotthegeneralcause,ifiteveroperate:andisnotthecauseoftherisewhichhastakenplaceinEnglandinmoderntimes。Iwillfirstprovethatthisisnotthecausewhichhasoperated,andthenIwillendeavourtoshowwhatisthecausewhichhas

producedtheeffect。

This,then,isthepropositiontowhichIfirstinviteyourattention。TheriseofrentsinEnglandinrecenttimeshasnotresultedfromtheRicardiancause,theriseofpricesofproduceinconsequenceoftheincreaseddifficultyofproduction。Toprovethis,IshallprovethatwhenrentsrisefromtheRicardiancause,(theincreaseddifficultyofproduction),thewholerentmustnecessarilybecomealargerfractionoftheproduce。Thus,inthecasewhichwehavetaken,theproduceofanacreofthelandsA,B,C,isrespectively12,10,and8。And,ifwe

supposethequantityofeachqualityoflandtobeequal,(asuppositionmademerelyatfirsttosimplifythereasoning,)when

Cisnotcultivated,theproduceisas12+10=22,andtherentas2。Therentis1/11theproduce。

WhenCiscultivated,theproduceisas1+12?+10=37?andtherentisas5+2?=7?Therentis?theproduce。Thusinthiscasetherentincreasesfrom2to7?anditisatthelatterstage1/5oftheproduce,havingattheformerbeenIt

isalargerportionofthewholeatthelastthanatthefirst。

Thenumbersinthiscaseresultfromthesuppositionthatthequantitiesofeachofthekindsofland,A,B,C,areequal。Butthegeneralresult,thattherentisagreaterportionoftheproduceatthelatterstagethanattheformer,doesnotdependonanysuppositionastoquantities。Itwillbethesame,whateverbethequantitiesofdifferentkindsofland。Foreachkindoflandwillhavetherentagreaterfractionatthelatterstagethanattheformer;andthereforeallthefractionsatthelatterstage,multipliedbytheirquantities,andaddedtogether,mustbegreaterthanattheformerstage。ButintheprogressofagricultureinEnglandduringthepresentcentury,itisallowed,byallwhohaveattendedtothe

subject,thatthoughtheamountofrenthasincreased,therentisnowasmallerfractionofthegrossproducethanitwas

formerly。Therentwasinformertimesonethirdofthegrossproduce。Itisnowonefourth,oronefifth。

Howisthistobeexplained?ThesameresultfollowsifwecompareEnglandandFrance;forFrance,inmattersofagriculture,mayberegardedasrepresentingEnglandatanearlierstage。ThusM。Lavergne,whohasstudiedthecausesofthesuperiorityofEnglandtoFrance,andpublishedhisresults

(L’EconomieRuraledel’Angleterre,3rdEd。1858,p。98),statesthegrossproduceofahectareinFrancetobe100,andthe

rent30;inEnglandthegrossproduceforthesamequantityoflandis250,andtherentis75。Therentintheformercaseis3/10,inthelatteritisstill3/10,thoughtheactualamountoftherentismorethandoubled。AgainIask,howisthistobeexplained?ItappearstomctobeoneofthemostimportantproblemsinPoliticalEconomy;

bothastoitsbearingupontheDoctrineofRent,andastoitsbearinguponthenatureofagriculturalprogress。Howisittobesolved?Theonlysolutionmustbethis:thatthenatureofagriculturalprogressinthesecasesisnotthatwhichissupposedinthe

theoryasstatedbyRicardo;namely,theincreaseddifficultyandexpenseofraisingproducefromland;or,asitisalsoexpressed,theextensionofcultivationtoinferiorsoils。Butifitisnotthat,whatisit?1reply,itistheuseofAuxiliaryCapital;thatis,capitalemployedinmachines,(ploughs,carts,&;c。)manure,draining,workingcattle,andallothercontrivancesbywhichtheagriculturallabourofmanisassisted。SuchcapitalisemployedtoaverylargeextentinEngland。Itappears(Jones,OnRent,p。223),fromvariousreturnsmadeat

differenttimestotheBoardofAgriculture,thatthewholecapitalagriculturallyemployedistothatappliedtothesupportof

labourers,as5to1:thatis,thereisfourtimesasmuchauxiliarycapitalusedasthereisofcapitalappliedtothemaintenance

oflabouranddirectlyintillage。InFrance,theauxiliarycapitaluseddoesnotamount(asappearsfromCountChaptal’s

statement)t。omorethantwicethatappliedtomaintainrusticlabour。InotherEuropeancountriesthequantityofauxiliary

capitalisprobablymuchless。

Now,howwillthisauxiliarycapitalaffectthequestionofrent?Inthisway。Thecapitalthusemployedistoacurtainextent,fixedcapitalthatis,itlastsacertainnumberofyears,and

requirestobereplacedonlyafterthattime。Thusacapitalof?owhichwearsoutin10yearsmaybereplacedbyareturnof?ayear。Orrather,acapitalof?0whichwearsoutin10yearsmaybereplacedwithprofitsbyareturnof?ayear。Now,whatwillbetheeffectofsuchacapitalonRents?Thiscapital(?0anacre)willnotbeemployed,unlessitwillproduceareturnof?anacre。Itmustthereforeincreasethe

producetoatleastthatamount。

Suppose,asbefore,threequalitiesoflandABC

ofwhichtheproduceis201510,respectively。

Thegrossproduceishere20+15+1045,andtherentis10+5=15,andas15isonethirdof45,therentisofthegrossproduce。

Letnowthecapital(say?0anacre)beapplied,andlettheproducenowbecomegreaterthanitwasforABC

by876,AandBthusstillretainingtheirsuperiorityoverC:theproducenowisABC

282216。Thegrossproduceisnow28+22+16=66,andtherentis12+6=18,therentis18/66oftheproduce,whichisasmallerfractionthanbefore,thoughtherentitselfhasincreasedfrom15to18。Letusmakeasuppositionofa。stilllargerincreaseofproducebytheapplicationofcapital。Theproducewithoutthecapital

beingasbefore,forABC

201510。

Lettheadditionresultingfromtheapplicationofcapitalbe161514:

theproducewillnowbe363024。Thegrossproduceis90,therentis12+6=18,and18is1/5of90;sothatinthiscase,thoughtherentisincreasedfrom1to18,itis,asafractionoftheproduce,diminishedfromonethirdtoonefifth。WeheresupposethattheproduceofthelandC,whichwasxobeforetheapplicationofthecapital,is24withthecapital。Theamount10correspondstothewagesoflabour,and14isrequiredtoreplacethecapitalwithprofits。M。LavergnegivesthefollowingestimateofthedistributionoftheproduceforanEnglishandforaFrenchhectare,(Ec。

Rur。p。98):

England:Rent75

Wages60

Farmer’sprofits10

Accessoryexpenses……50

Taxes25

250

France:Rent30

Wages50

Farmer’sprofits10

Accessoryexpenses8

Taxes5

100HeretheAccessoryExpensesarethereturnwhichisrequisitetoreplacetheAuxiliaryCapital。Aswesee,hemakesthemio

timesasgreatinEnglandasinFrance。

WeseethatwhilethefarmerinEnglandpays75inwages,herequires90forhisprofits,andforkeepinguphisstock。Sincehisprofitsareestimatedat40,wemayestimatehiscapitalat400,whichismorethan4。timeswhathepaysinwages;asIhavesaidthatthosewhojudgefromfactshaveestimatedit。Butallthesenumbersarehypothetical,andintroducedmerelyforthesakeofillustratingbyexamplemyproposition。The

propositionisthis:thatrentsmayincreasenotonlybytheextensionofcultivationtopoorersoils;butalsobythe

improvementofmethodsofculture;andthattheincreaseofproduceandofrentsinEnglandhasarisenfromsuchimprovement,muchmorethanfromtheextensionofculturetoworsesoils。Further,thisimprovementofthemethodsofculturehasinvolvedtheapplicationofagreatamountofcapital,asauxiliarytothelabourofmanincultivation。Weknowsuchanapplicationofcapitaltohavetakenplace;andtheproofthatthisistherealcaseisfoundinthefact,thattherenthasbecomeasmallerportionofthegrossproduce。IhopeIhavenowgivenasolutionoftheProblem:Howithascometopass,thatwhilerentshaveincreasedinEngland,the

renthasbecomeasmallerfractionoftheproduce。Itisdemonstrable,asyouhaveseen,thatthiscannotarisefromthecauseassertedbyMrRicardoandMrMcCullochtobethesoleanduniversalsourceofanincreaseofrents。Butitmaybeasked,howdidthepropositionwhichIamcombatingthattheincreaseofrentarisesuniversallyfromthe

extensionofcultivationtoinferiorsoils,ortothesamesoilwithinferiorreturnsobtainsuchaholdonthemindsofeminentPoliticalEconomists?TothisIreply,thatthishappensbecausethispropositionwasaningeniousdeductionfromthedoctrineofrent。onacertain

hypothesis;namelyonthehypothesisofaconstantlydecreasingreturntoagriculturallabour;andinconsequenceoftheingenuityofthededuction,thedoctrineandthehypothesiswereacceptedasprovingeachother。Thedoctrineofrent,thatrentistheexcessoftheproduceofgoodsoilsovertheworstsoils,orovertheworstremunerated

capital,wasreceived,aswehaveseen,withgreatadmiration。Thehypothesis,thatsuccessiveequaldosesoflabourorof

capitalproducediminishingresults,wasacceptedasmostsimple。Perhapsitwassuggestedbyavaguenotionoftheeffect

oflabouremployedindiggingthesoil。Iftheproduceofagivenfieldbeincreasedbyoneman’sdiggingoverthesoil,itmay

perhapsbefurtherincreasedbytwomenwhomaypulverizethesoilstillfurther:butitisnotlikelythatthesecondman’slabourwillproduceanadditionequaltothefirst。Butthereseemstobenoreasonwhatevertosupposethatthisistheruleofthegeneralease。Additionallabour,and

additionalcapital,maybeemployeduponland,andtheresultmaybenoadditionalproduce。Butalsoadditionallabourand

additionalcapital,inotherways,maybeemployedsoastogiveadditionalproducetoanextentofwhichwecannot

prescribethelimitsbeforehand。Thegreatpointinsuchcasesistodiscoverhowthismaybedone。Theresultdependsupon

agriculturalskillandinventiveness,andmaybegreatormaybesmall。Thoughthelawofdecreasingproductivenessto

additionallabourandcapitalhadbeenlaiddownwithgreatconfidence,thereseemstobenogroundforassertingitasalaw

oftheprogressofagriculture。Thegreatimprovementsinagriculture,improvedmachines,manures,drainage,donotappear

tohavefollowedthislaw。Theimprovementsinagriculturehavenotconsistedintryingmoreandmoretosqueezefroma

givenplotofgroundtheutmostcropthatitcanproduceofonekind,butinintroducingnewkindsoffoodforanimals,as

turnipsintothesandysoilsofNorfolk,andartificialgrassesofallkinds,andinmakingonepartofthefarmplayintothe

handsofanother,soastofeedanincreasednumberofcattle,andyettohaveanincreasedbreadthofcerealcrops。There

havebeenimprovementstooinallagriculturalmachinery:newmanures:newandimprovedmodesofdraining:andmany

otherimprovements。Inthesewaystheproduceofthelandhasbeenincreased,andadditionalcapitalhasbeenemployed

uponit:butthereisnogroundwhateverforsayingthateachadditionalequaldoseofcapitalsoappliedhasproducedsmallerresults。Tomakeimprovementsinagriculturemustdepend,asIhavesaid,uponinventiveskillanditistheskillwhichhasbeen

broughtoutinthispursuitinEnglandwhichhasbeenthecauseoftheagriculturalprogressofEngland;andthishasbeenthe

rewardofthecare,study,andenterprizebestoweduponthesubject。Thatthis,andnotthedecreasingfertilityofsoils,isthe

causeoftheincreaseofrentsinEngland,isshown,asIhavesaid,bythefactthattherentthoughgreaterabsolutely,isaless

fractionofthewholeproduce。

Proportionofagriculturalandnon—agriculturalPopulation。Besidestheproportionwhichrentbearstoproduce,thereisanotherlargefactintheconditionofEngland,whichproves,in

themostconclusivemanner,thatthecourseofeventsbywhichEnglandhascomeintoitspresentcondition,hasbeenan

increaseintheproductivepowersofitsagriculture,suchashasplaceditinadvanceofothercountries:inadvanceofFrance,andofothercountriesprobablystillmore。Thisfactis,theproportionofthenon—agriculturaltotheagriculturalpopulation。InEnglandthenon—agriculturistsare

doublethenumberoftheagriculturists。InEngland,cultivatorsofthesoilproducesustenancefor8besidesthemselves;thatis,for12personsaltogether。ButinFrancebeforetheRevolution,thecultivatorsweretothenon—cultivatorsas4to1:thatis,4cultivatorsproducedsustenancefor5persons。PerhapsnowinFrancethecultivatorsarctothewholepopulationas2to3。Hence4cultivatorsproducesustenancefor6persons。ThustheproductivepowersoftheagriculturalpopulationareinEnglanddoubleofwhattheyareinFrance。Whatisthemanneroftheincreaseofthenonagriculturalclasses?PlainlytheemploymentofAuxiliaryCapitalbringsmany

ofthemintobeing。TheAuxiliaryCapitalisemployedinsupportingthosewhoarenotdirectlyengagedinagriculture,butin

otherwaysauxiliarytoagriculture:forinstance,themachine—maker,whomakesploughsandcarts,andnow,thrashingand

winnowingmachinesworkedbysteam—engines:thebrick—makerwhomakesdrainingtiles:thesailorwhobringsguano

fromafar:andmanyothers。Itisreckoned,asIhavesaid,that(Jones,p。232)theagriculturists,inusingtheresultsofsuchauxiliaries,employ4timesasmuchcapitalastheyexpendinwages。Hence,ifwagesbeas10,thewholecapitalemployedmustbeas50;andifthefarmer’sprofitonhiscapitalbeiopercent。,

whichisareasonablerate,thefarmer’sincomewillbe5;thatis,halfthewholeamountofthewageswhichhepaystohis

labourers,MrJones,fromwhomImainlytakethesedetails,hastracedintootherresultstheeffectsoftheemploymentofauxiliarycapital。Onthispointofthegreatincomeofthecapitalistsemployedinagriculture,heobserves,(p。233):\"Whiletherevenueofthecapitalistsequalsonlyonetenththatofthelabourers,theyformnoprominentpartofthe

community,andindeedmustusuallybepeasantsorlabourersthemselves。Butamassofprofitsequaltoorexceeding

one—halfthewagesof[agricultural]labour(whichmassexistsinEngland)naturallyconvertstheclassreceivingitintoa

numerousandvariedbody。Theirinfluenceinacommunityinwhichtheyarethedirectemployersofalmostallthelabourers,

becomesveryconsiderable;andwhatisinsomerespectsofmoreimportance,sucharichandnumerousbodyof

capitalists,as,descendingfromthehigherrankstheyapproachthebodyoflabourersbyvariousgradationstilltheyalmost

minglewiththemformaspeciesofmoralconductorsbywhichthehabitsandfeelingsoftheupperandmiddlingclassesarecommunicateddownwards,andactmoreorlesspowerfullyuponthoseoftheverylowestranksofthecommunity。\"TheaboveviewsoftheeffectofAuxiliaryCapitalonRentareborrowedfromaveryableandoriginalworkonRent,

publishedin1831,byMrRichardJones,whowassubsequentlyProfessorofPoliticalEconomy。atHaileyburyCollege。So

farasIknow,hewasthefirstpersonwhosolvedtheproblemwhichwehavebeenconsidering;howRentsbecome

absolutelylargerandyetasmallerpartoftheproduce。

DifferentkindsofRent。AllthathasbeensaidappliesonlytoFarmers’rents;thatis,rentspaidtoalandlordbyacapitalistwhoemployslabourers。

ThecapitalistemployshiscapitalforProfit;andtherateofprofitisdeterminedbycompetitionwithothercapitalists。Ifhecouldnotgetthisprofitbyfarming,hewouldremovehiscapitaltosomeotheremployment。Butthisfactthusassumedthatcapitalistscanremovetheircapitalfromfarming,andwilldoso,iffarmingdoesnotpayis

notgenerallytrue;is,infact,trueonlyinEnglandandafewdistrictselsewhere。Norisittruethatthelandiscultivatedby

capitalistsemployingotherstolabour,sellingtheirproduceandlivingupontheproceeds。Overthegreaterpartoftheearth’s

surface,cultivationiscarriedonbypersonswhoraisetheirsubsistencefromthesoil,andpayaportiontotheownerofthesoil,inthiscasethepaymentstotheownerofthesoilrents,thatisaredeterminednotbycompetition,butbycustom。Andthus,infact,landhasbeenheld,andrenthasbeenpaid,onverydifferentprinciplesfromthatwhichwehavedescribed。

AccordingtothemodeofholdingthecultivatorshavebeenclassedasMé;tayers,Serfs,Ryots,Cottiers。

ThesearethuscharacterizedbyMrJones,whointroducedthisclassificationintoPoliticalEconomy。TheMé;tayerisapeasanttenant,extractinghisownwagesandsubsistencefromthesoil。Hepaysaproducerenttotheowneroftheland。Thelandlordsupplieshimwithstock。`ThismodeoftenureprevailslargelyinFranceandItaly,andwasthecommontenureamongtheGreeksandRomans:(Mé;tayers=Medietarii)。Serfrentsarelabourrents:thatis,theownerofthelandsetsasideaportionofthelandforcultivationbythepeasantand

leaveshimtoextracthisownsubsistencefromit;andlieexactsasarentfortheland,thusgiventothecultivator,acertainquantityoflabourtobeemployedontheremainderoftheestate,forthebenefitofthelord。TheserentshaveprevailedonalargerscaleinEasternEuropeinRussia,Hungary,Poland,LivoniaandEsthonia,andinGermany。Thereare,orwerelately,remnantsofthemintheScottishhighlands,(Jones,p。45)。Ryotrentsareproducerentspaidbyalabourerraisinghisownwagesfromthesoil,tothesovereign,astheproprietorof

thesoil,(Jones,p。109)。

TheyarepeculiartoAsia,India,Persia,Turkey;probablyexistinChina。Cottierrentsarerentscontractedtobepaidinmoneybypeasanttenants,extractingtheirownsubsistencefromthesoil。TheyexistinIreland。MrMill,whohasborrowedMrJones’sclassificationinthemain,putsRyotrentsandCottierrentsinthesamechapter:butthedifferencesbetweenthetwoareimportant,asweshallsee。MrMillhasanexcellentchapterinwhichheshowshowthedifferencebetweenFarmers’rentsandotherrentsdependsonthedifferencebetweenCompetitionandCustom,asthegeneralruleofeconomicalproceedings(Polit。Econ。p。282)。\"Undertheruleofindividualproperty,thedivisionoftheproduceistheresultoftwodeterminingagencies:Competition,

andCustom。Itisimportanttoascertaintheamountofinfluencewhichbelongstoeachofthesecauses,andinwhatmannertheoperationofoneismodifiedbytheother。\"Politicaleconomistsgenerally,andEnglishpoliticaleconomistsaboveothers,areaccustomedtolayalmostexclusivestress

uponthefirstoftheseagencies;toexaggeratetheeffectofcompetition,andtakeintolittleaccounttheother,and

conflictingprinciple。Theyareapttoexpressthemselvesasiftheythoughtthatcompetitionactuallydoes,inallcases,

whateveritcanbeshewntobethetendencyofcompetitiontodo。Thisispartlyintelligible,ifweconsiderthatonlythrough

theprincipleofcompetitionhaspoliticaleconomyanypretensiontothecharacterofascience。Sofarasrents,profits,

wages,prices,aredeterminedbycompetition,lawsmaybeassignedforthem。\"

Andthisappliesespeciallytothetenureofland,(p。285):\"Therelations,moreespecially,betweenthelandownerandthecultivator,andthepaymentsmadebythelattertothe

former,are,inallstatesofsocietybutthemostmodern,determinedbytheusageofthecountry。Neveruntillatetimeshave

theconditionsoftheoccupancyoflandbeen(asageneralrule)anaffairofcompetition。Theoccupierforthetimehasvery

commonlybeenconsideredtohavearighttoretainhisholding,whilehefulfilsthecustomaryrequirements;andhasthus

become,inacertainsense,aco—proprietorofthesoil。Evenwheretheholderhasnotacquiredthisfixityoftenure,thetermsofoccupationhaveoftenbeenfixedandinvariable。\"InIndia,forexample,andotherAsiaticcommunitiessimilarlyconstituted,theryots,orpeasant—farmers,arenotregarded

astenantsatwill,orevenastenantsbyvirtueofalease。Inmostvillagesthereareindeedsomeryotsonthisprecarious

footing,consistingofthose,orthedescendantsofthose,whohavesettledintheplaceataknownandcomparativelyrecent

period:butallwhoarelookeduponasdescendantsorrepresentativesoftheoriginalinhabitants,arethoughtentitledto

retaintheirland,aslongastheypaythecustomaryrents。Whatthesecustomaryrentsare,oroughttobe,hasindeed,in

mostcases,becomeamatterofobscurity;usurpation,tyranny,andforeignconquesthavingtoagreatdegreeobliteratedthe

evidencesofthem。ButwhenanoldandpurelyHindooprincipalityfallsunderthedominionoftheBritishGovernment,or

themanagementofitsofficers,andwhenthedetailsoftherevenuesystemcometobeinquiredinto,itisoftenfoundthat

althoughthedemandsofthegreatlandholder,theState,havebeenswelledbyfiscalrapacityuntilalllimitispracticallylost

sightof,ithasyetbeenthoughtnecessarytohaveadistinctnameandaseparatepretextforeachincreaseofexaction;so

thatthedemandhassometimescometoconsistofthirtyorfortydifferentitems,inadditiontothenominalrent。This

circuitousmodeofincreasingthepaymentsassuredlywouldnothavebeenresortedto,iftherehadbeenanacknowledged

rightinthelandlordtoincreasetherent。Itsadoptionisaproofthattherewasonceaneffectivelimitation,arealcustomary

rent;andthattheunderstoodrightoftheryottotheland,solongashepaidrentaccordingtocustom,wasatsometimeor

othermorethannominal。TheBritishGovernmentofIndiaalwayssimplifiesthetenurebyconsolidatingthevarious

assessmentsintoone,thusmakingtherentnominallyaswellasreallyanarbitrarything,oratleastamatterofspecific

agreement:butitscrupulouslyrespectstherightoftheryottotheland,thoughitseldomleaveshimmuchmorethanabaresubsistence。\"InmodernEuropethecultivatorshavegraduallyemergedfromastateofpersonalslavery。Thebarbarianconquerorsofthe

Westernempirefoundthattheeasiestmodeofmanagingtheirconquestswouldbetoleavethelandinthehandsinwhich

theyfoundit,andtosavethemselvesalaboursouncongenialasthesuperintendenceoftroopsofslaves,byallowingthe

slavestoretaininacertaindegreethecontroloftheirownactions,underanobligationtofurnishthelordwithprovisions

andlabour。Acommonexpedientwastoassigntotheserf,forhisexclusiveuse,asmuchlandaswasthoughtsufficientfor

hissupport,andtomakehimworkontheotherlandsofhislordwheneverrequired。Bydegreestheseindefiniteobligations

weretransformedintoadefiniteone,ofsupplyingafixedquantityofprovisionsorafixedquantityoflabour:andasthe

lords,intime,becameinclinedtoemploytheirincomeinthepurchaseofluxuriesratherthaninthemaintenanceofretainers,

thepaymentsinkindwerecommutedforpaymentsinmoney。Eachconcession,atfirstvoluntary,andrevocableatpleasure,

graduallyacquiredtheforceofcustom,andwasatlastrecognisedandenforcedbythetribunals。In。thismannertheserfs

progressivelyroseintoafreetenantry,whoheldtheirlandinperpetuityonfixedconditions。Theconditionsweresometimes

veryonerous,andthepeopleverymiserable。Buttheirobligationsweredeterminedbytheusageorlawofthecountry,andnotbycompetition。\"Wherethecultivatorshadneverbeen,strictlyspeaking,inpersonalbondage,oraftertheyhadceasedtobeso,the

exigenciesofapoorandlittleadvancedsocietygaverisetoanotherarrangement,whichinsomepartsofEurope,even

highlyimprovedparts,hasbeenfoundsufficientlyadvantageoustobecontinuedtothepresentday。Ispeakofthemé;tayer

system。Underthis,thelandisdivided,insmallfarms,amongsinglefamilies,thelandlordgenerallysupplyingthestock

whichtheagriculturalsystemofthecountryisconsideredtorequire,andreceiving,inlieuofrentandprofit,afixed

proportionoftheproduce。Thisproportion,whichisgenerallypaidinkind,isusually,(asisimpliedinthewordsmé;tayer,

mezzaiuolo,andmedietarius,)one—half。Thereareplaces,however,suchastherichvolcanicsoiloftheProvinceofNaples。

wherethelandlordtakestwo—thirds,andyetthecultivatorbymeansofanexcellentagriculturecontrivestolive。But

whethertheproportionistwo—thirdsorone—half,itisafixedproportion;notvariablefromfarmtofarm,orfromtenantto

tenant。Thecustomofthecountryistheuniversalrule;nobodythinksofraisingorloweringrents,oroflettinglandonother

thanthecustomaryconditions。Competition,asaregulatorofrent,hasnoexistence。\"