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,itwillbe123or15。
ThevalueoftheproduceofBwillbeincreasedalsoby?insteadof10itwillbeio2?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,theproduceisas1210=22,andtherentas2。Therentis1/11theproduce。
WhenCiscultivated,theproduceisas112?10=37?andtherentisas52?=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。
Thegrossproduceishere20151045,andtherentis105=15,andas15isonethirdof45,therentisofthegrossproduce。
Letnowthecapital(say?0anacre)beapplied,andlettheproducenowbecomegreaterthanitwasforABC
by876,AandBthusstillretainingtheirsuperiorityoverC:theproducenowisABC
282216。Thegrossproduceisnow282216=66,andtherentis126=18,therentis18/66oftheproduce,whichisasmallerfractionthanbefore,thoughtherentitselfhasincreasedfrom15to18。Letusmakeasuppositionofa。stilllargerincreaseofproducebytheapplicationofcapital。Theproducewithoutthecapital
beingasbefore,forABC
201510。
Lettheadditionresultingfromtheapplicationofcapitalbe161514:
theproducewillnowbe363024。Thegrossproduceis90,therentis126=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。"