点击下载App，搜索"Capital-3",免费读到尾

　　Thecoal，therefore，hasvalue，mustbepaidforbyanequivalent，andhasacost。Thewaterfallisanaturalproductionagentintheproductionofwhichnolabourenters。

　　Butthisisnotall。Themanufacturerwhooperateswithsteamalsoemploysnaturalforceswhichcosthimnothingyetmakethelabourmoreproductiveandincreasethesurplus-valueandtherebytheprofit，inasmuchastheythuscheapenthemanufactureofthemeansofsubsistencerequiredforthelabourers。Thesenaturalforcesarethusquiteasmuchmonopolisedbycapitalasthesocialnaturalforcesoflabourarisingfromco-operation，divisionoflabour，etc。Themanufacturerpaysforcoal，butnotforthecapacityofwatertoalteritsphysicalstate，toturnintosteam，notfortheelasticityofthesteam，etc。Thismonopolisationofnaturalforces，thatis，oftheincreaseinlabour-powerproducedbythem，iscommontoallcapitaloperatingwithsteam-engines。Itmayincreasethatportionoftheproductoflabourwhichrepresentssurplus-valueinrelationtothatportionwhichistransformedintowages。Insofarasitdoesthis，itraisesthegeneralrateofprofit，butitdoesnotcreateanysurplus-profit，forthisconsistsoftheexcessofindividualprofitoveraverageprofit。Thefactthattheapplicationofanaturalforce，awaterfall，createssurplus-profitinthiscase，cannotthereforebeduesolelytothecircumstancethattheincreasedproductivityoflabourhereresultsfromtheapplicationofanaturalforce。Othermodifyingcircumstancesarenecessary。

　　Conversely。Themereapplicationofnaturalforcesinindustrymayinfluencethelevelofthegeneralrateofprofitbecauseitaffectsthequantityoflabourrequiredtoproducethenecessarymeansofsubsistence。

　　Butinitselfitdoesnotcreateanydeviationfromthegeneralrateofprofit，andthisispreciselythepointinwhichweareinterestedhere。

　　Furthermore，thesurplus-profitwhichsomeindividualcapitalotherwiserealisesinaparticularsphereofproduction-fordeviationsoftheratesofprofitinvariousspheresofproductionarecontinuallybalancedoutintoanaveragerate-isdue，asidefromfortuitousdeviations，toareductionincost-price，inproductioncosts。Thisreductionariseseitherfromthefactthatcapitalisusedingreaterthanaveragequantities，sothatfauxfraisofproductionarereduced，whilethegeneralcausesincreasingtheproductivenessoflabourcooperation，divisionoflabour，etc。canbecomeeffectivetoahigherdegree，withmoreintensity，becausetheirfieldofactivityhasbecomelarger；oritmayarisefromthefactthat，asidefromtheamountoffunctioningcapital，bettermethodsoflabour，newinventions，improvedmachinery，chemicalmanufacturingsecrets，etc。，inshort，newandimproved，betterthanaveragemeansofproductionandmethodsofproductionareused。Thereductionincost-priceandthesurplus-profitarisingfromitareheretheresultofthemannerinwhichthefunctioningcapitalisinvested。Theyresulteitherfromthefactthatthecapitalisconcentratedinthehandsofonepersoninextraordinarilylargequantitiesaconditionthatiscancelledoutassoonasequalmagnitudesofcapitalareusedontheaverage，orfromthefactthatacertainmagnitudeofcapitalfunctionsinaparticularlyproductivemanneraconditionthatdisappearsassoonastheexceptionalmethodofproductionbecomesgeneralorissurpassedbyastillmoredevelopedone。

　　Thecauseofthesurplus-profit，then，arisesherefromthecapitalitselfwhichincludesthelaboursetinmotionbyitwhetheritbeduetothegreatermagnitudeofcapitalemployedortoitsmoreefficientapplication；

　　and，asamatteroffact，thereisnoparticularreasonwhyallcapitalinthesameproductionsphereshouldnotbeinvestedinthesamemanner。

　　Onthecontrary，thecompetitionbetweencapitalstendstocancelthesedifferencesmoreandmore。Thedeterminationofvaluebythesociallynecessarylabour-timeassertsitselfthroughthecheapeningofcommoditiesandthecompulsiontoproducecommoditiesunderthesamefavourableconditions。

　　Butmattersaredifferentwiththesurplus-profitofanindustrialcapitalistwhomakesuseofthewaterfall。Theincreasedproductivenessofthelabourusedbyhimcomesneitherfromthecapitalandlabouritself，norfromthemereapplicationofsomenaturalforcedifferentfromcapitalandlabourbutincorporatedinthecapital。ItarisesfromthegreaternaturalproductivenessoflabourboundupwiththeapplicationofaforceofNature，butnotaforceofNaturethatisatthecommandofallcapitalinthesamesphereofproduction，asforexampletheelasticityofsteam。Inotherwords，itsapplicationisnottobetakenforgrantedwhenevercapitalisgenerallyinvestedinthissphereofproduction。Onthecontrary，itisamonopolisableforceofNaturewhich，likethewaterfall，isonlyatthecommandofthosewhohaveattheirdisposalparticularportionsoftheearthanditsappurtenances。

　　Itisbynomeanswithinthepowerofcapitaltocallintoexistencethisnaturalpremiseforagreaterproductivityoflabourinthesamemannerasanycapitalmaytransformwaterintosteam。ItisfoundonlylocallyinNatureand，whereveritdoesnotexist，itcannotbeestablishedbyadefiniteinvestmentofcapital。Itisnotboundtogoodswhichlabourcanproduce，suchasmachinesandcoal，buttospecificnaturalconditionsprevailingincertainportionsofland。Thosemanufacturerswhoownwaterfallsexcludethosewhodonotfromusingthisnaturalforce，becauseland，andparticularlylandendowedwithwater-power，isscarce。Thisdoesnotpreventtheamountofwater-poweravailableforindustrialpurposesfrombeingincreased，eventhoughthenumberofnaturalwaterfallsinagivencountryislimited。Thewaterfallmaybeharnessedbymaninordertofullyexploititsmotiveforce。Ifsuchexists，thewater-wheelmaybeimprovedsoastomakeuseofasmuchofthewater-poweraspossible；wheretheordinarywheelisnotsuitableforthewater-supply，turbinesmaybeused，etc。

　　Thepossessionofthisnaturalforceconstitutesamonopolyinthehandsofitsowner；itisaconditionforanincreaseintheproductivenessoftheinvestedcapitalthatcannotbeestablishedbytheproductionprocessofthecapitalitself；[33]thisnaturalforce，whichcanbemonopolisedinthismanner，isalwaysboundtotheland。Suchanaturalforcedoesnotbelongtothegeneralconditionsofthesphereofproductioninquestion，nortothoseconditionsofthelatterwhichmaybegenerallyestablished。

　　Nowletusassumethatthewaterfalls，alongwiththelandtowhichtheybelong，areheldbyindividualswhoareregardedasownersoftheseportionsoftheearth，i。e。，whoarelandowners。Theseownerspreventtheinvestmentofcapitalinthewaterfallsandtheirexploitationbycapital。

　　Theycanpermitorforbidsuchutilisation。Butawaterfallcannotbecreatedbycapitaloutofitself。Therefore，thesurplus-profitwhicharisesfromtheemploymentofthiswaterfallisnotduetocapital，buttotheutilisationofanaturalforcewhichcanbemonopolised，andhasbeenmonopolised，bycapital。Underthesecircumstances，thesurplus-profitistransformedintoground-rent，thatis，itfallsintopossessionoftheownerofawaterfall。

　　Ifthemanufacturerpaystheownerofawaterfall&pound；10annually，thenhisprofitis&pound；15，thatis，15%onthe&pound；100whichthenmakeuphiscostofproduction；andheisjustaswellorpossiblybetteroffthanallothercapitalistsinhissphereofproductionwhooperatewithsteam。Itwouldnotaltermattersonebitifthecapitalisthimselfshouldbetheownerofawaterfall。Hewould，insuchacase，pocketasbeforethesurplus-profitof&pound；10inhiscapacityaswaterfallowner，andnotinhiscapacityascapitalist；andpreciselybecausethissurplusdoesnotstemfromhiscapitalassuch，butratherfromthecontrolofalimitednaturalforcedistinctfromhiscapitalwhichcanbemonopolised，isittransformedintoground-rent。

　　First，itisevidentthatthisrentisalwaysadifferentialrent，foritdoesnotenterasadeterminingfactorintothegeneralproductionpriceofcommodities，butratherisbasedonit。Itinvariablyarisesfromthedifferencebetweentheindividualproductionpriceofaparticularcapitalhavingcommandoverthemonopolisednaturalforce，ontheonehand，andthegeneralproductionpriceofthetotalcapitalinvestedinthesphereofproductionconcerned，ontheother。

　　Secondly，thisground-rentdoesnotarisefromtheabsoluteincreaseintheproductivenessofemployedcapital，orlabourappropriatedbyit，sincethiscanonlyreducethevalueofcommodities；itisduetothegreaterrelativefruitfulnessofspecificseparatecapitalsinvestedinacertainproductionsphere，ascomparedwithinvestmentsofcapitalwhichareexcludedfromtheseexceptionalandnaturalconditionsfavouringproductiveness。

　　Forinstance，iftheuseofsteamshouldofferoverwhelmingadvantagesnotofferedbytheuseofwater-power，despitethefactthatcoalhasvalueandthewater-powerhasnot，andiftheseadvantagesmorethancompensatedfortheexpense，then，thewater-powerwouldnotbeusedandcouldnotproduceanysurplus-profit，andthereforecouldnotproduceanyrent。

　　Thirdly，thenaturalforceisnotthesourceofsurplus-profit，butonlyitsnaturalbasis，becausethisnaturalbasispermitsanexceptionalincreaseintheproductivenessoflabour。Inthesameway，use-valueisingeneralthebearerofexchange-value，butnotitscause。Ifthesameuse-valuecouldbeobtainedwithoutlabour，itwouldhavenoexchange-value，yetitwouldretain，asbefore，thesamenaturalusefulnessasuse-value。

　　Ontheotherhand，nothingcanhaveexchange-valueunlessithasuse-value，i。e。，unlessitisanaturalbeareroflabour。Wereitnotforthefactthatthevariousvaluesareaveragedoutintopricesofproduction，andthevariousindividualpricesofproductionintoageneralpriceofproductionregulatingthemarket，themereincreaseinproductivityoflabourthroughutilisationofthewaterfallwouldmerelylowerthepriceofcommoditiesproducedwiththeaidofthiswaterfall，withoutincreasingtheshareofprofitcontainedinthesecommodities。Similarly，ontheotherhand，thisincreasedproductivityoflabouritselfwouldnotbeconvertedintosurplus-valuewereitnotforthefactthatcapitalappropriatesthenaturalandsocialproductivityofthelabourusedbyitasitsown。

　　Fourthly，theprivateownershipofthewaterfallinitselfhasnothingtodowiththecreationofthesurplus-valueprofitportion，andtherefore，ofthepriceofthecommodityingeneral，whichisproducedbymeansofthewaterfall。Thissurplus-profitwouldalsoexistiflandedpropertydidnotexist；forinstance，ifthelandonwhichthewaterfallissituatedwereusedbythemanufacturerasunclaimedland。Hencelandedpropertydoesnotcreatetheportionofvaluewhichistransformedintosurplus-profit，butmerelyenablesthelandowner，theownerofthewaterfall，tocoaxthissurplus-profitoutofthepocketofthemanufacturerandintohisown。Itisnotthecauseofthecreationofsuchsurplus-profit，butisthecauseofitstransformationintotheformofground-rent，andthereforeoftheappropriationofthisportionoftheprofit，orcommodity-price，bytheownerofthelandorwaterfall。

　　Fifthly，itisevidentthatthepriceofthewaterfall，thatis，thepricewhichthelandownerwouldreceivewerehetosellittoathirdpartyoreventothemanufacturerhimself，doesnotimmediatelyenterintotheproductionpriceofthecommodities，althoughitdoesenterintotheindividualcost-priceofthemanufacturer；becausetherentarisesherefromthepriceofproductionofsimilarcommoditiesproducedbysteammachinery，andthispriceisregulatedindependentlyofthewaterfall。Furthermore，thispriceofthewaterfallonthewholeisanirrationalexpression，butbehinditisbiddenarealeconomicrelationship。Thewaterfall，likelandingeneral，andlikeanynaturalforce，hasnovaluebecauseitdoesnotrepresentanymaterialisedlabour，andtherefore，ithasnoprice，whichisnormallynomorethantheexpressionofvalueinmoneyterms。Wherethereisnovalue，thereisalsoeoipsonothingtobeexpressedinmoney。

　　Thispriceisnothingmorethanthecapitalisedrent。Landownershipenablesthelandownertoappropriatethedifferencebetweentheindividualprofitandaverageprofit。Theprofitthusacquired，whichisrenewedeveryyear，maybecapitalised，andappearsthenasthepriceofthenaturalforceitself。Ifthesurplus-profitrealisedbythemanufacturerusingthewaterfallamountsto&pound；10peryear，andtheaverageinterestis5%，thenthese&pound；10representtheannualinterestonacapitalof&pound；200andthecapitalisationoftheannual&pound；10whichthewaterfallenablesitsownertoappropriatefromthemanufacturer，appearsthenasthecapital-valueofthewaterfallitself。Thatitisnotthewaterfallitselfwhichhasvalue，butthatitspriceisamerereflectionoftheappropriatedsurplus-profitcapitalisticallycalculated，becomesatonceevidentfromthefactthatthepriceof&pound；200representsmerelytheproductobtainedbymultiplyingasurplus-profitof&pound；10by20years，whereas，otherconditionsremainingequal，thesamewaterfallwillenableitsownertoappropriatethese&pound；10

　　everyyearforanindefinitenumberofyears-30years，100years，orxyears；and，whereas，ontheotherhand，shouldsomenewmethodofproductionnotapplicablewithwater-powerreducethecost-priceofcommoditiesproducedbysteammachineryfrom&pound；100to&pound；90，thesurplus-profit，andtherebytherent，andthusthepriceofthewaterfall，woulddisappear。

　　Nowthatwehavedescribedthegeneralconceptofdifferentialrent，weshallpassontoitsconsiderationinagricultureproper。Whatappliestoagriculturewillalsoapplyonthewholetomining。

　　NOTES

　　33。Concerningextraprofit，seetheInquiry[intothosePrinciples，RespectingtheNatureofDemandandtheNecessityofConsumption，latelyadvocatedbyMr。Malthus，London，1821-Ed。]againstMalthus。1894:CapitalIII——Chapter39KarlMarx’sCAPITAL

　　volumeIII

　　THEPROCESSOFCAPITALISTPRODUCTIONASAWHOLECHAPTERXXXIX

　　FIRSTFORMOFDIFFERENTIALRENTDIFFERENTIALRENTIRicardoisquiterightinthefollowingobservations:”Rentisalwaysthedifferencebetweentheproduceobtainedbytheemploymentoftwoequalquantitiesofcapitalandlabour”Principles，p。59。[Hemeansdifferentialrent，forheassumesthatnootherrentbutdifferentialrentexists。]Heshouldhaveadded，”onequalareasofland”insofarasitisamatterofground-rentandnotsurplus-profitingeneral。

　　Inotherwords，surplus-profit，ifnormalandnotduetoaccidentaloccurrencesinthecirculationprocess，isalwaysproducedasadifferencebetweentheproductsoftwoequalquantitiesofcapitalandlabour，andthissurplus-profitistransformedintogroundrentwhentwoequal。quantitiesofcapitalandlabourareemployedonequalareasoflandwithunequalresults。Moreover，itisbynomeansabsolutelynecessaryforthissurplus-profittoarisefromtheunequalresultsofequalquantitiesofinvestedcapital。

　　Thevariousinvestmentsmayalsoemployunequalquantitiesofcapital。

　　Indeed，thisisgenerallythecase。Butequalproportions，forinstance&pound；100ofeach，produceunequalresults；thatis，theirratesofprofitaredifferent。Thisisthegeneralprerequisitefortheexistenceofsurplus-profitinanysphereofcapitalinvestment。Thesecondprerequisiteisthetransformationofthissurplus-profitintotheformofground-rentofrentingeneralasaformdistinctfromprofit；itmustbeinvestigatedineachcasewhen，how，underwhatconditionsthistransformationtakesplace。

　　Ricardoisalsorightinthefollowingobservation，provideditislimitedtodifferentialrent:”Whateverdiminishestheinequalityintheproduceobtainedonthesameoronnewland，tendstolowerrent，andwhateverincreasesthatinequality，necessarilyproducesanoppositeeffectandtendstoraiseit”p。74。

　　However，amongthesecausesarenotmerelythegeneralonesfertilityandlocation，butalso1thedistributionoftaxes，dependingonwhetheritoperatesuniformlyornot；thelatterisalwaysthecasewhen，asinEngland，itisnotcentralisedandwhenthetaxisleviedonland，notonrent；2theinequalitiesarisingfromadifferenceinagriculturaldevelopmentindifferentpartsofthecountry，sincethislineofproduction，owingtoitstraditionalcharacter，evensoutwithmoredifficultythanmanufacture；and3theinequalityindistributionofcapitalamongcapitalisttenants。Sincetheinvasionofagriculturebythecapitalistmodeofproduction，transformationofindependentlyproducingpeasantsintowage-workers，isinfactthelastconquestofthismodeofproduction，theseinequalitiesaregreaterherethaninanyotherlineofproduction。

　　Havingmadethesepreliminaryremarks，IwillfirstpresentabriefsummaryofthecharacteristicfeaturesofmyanalysisincontradistinctiontothatofRicardo，etc。

　　Weshallfirstconsidertheunequalresultsofequalquantitiesofcapitalappliedtodifferentplotsoflandofequalsize；or，inthecaseofunequalsize，resultscalculatedonthebasisofequalareas。

　　Thetwogeneralcausesoftheseunequalresults-quiteindependentofcapital-aie:1Fertility。Withreferencetothisfirstpoint，itwillbenecessarytodiscusswhatismeantbynaturalfertilityoflandandwhatfactorsareinvolved。2Thelocationoftheland。Thisisadecisivefactorinthecaseofcoloniesandingeneraldeterminesthesequenceinwhichplotsoflandcanbecultivated。Furthermore，itisevidentthatthesetwodifferentcausesofdifferentialrent-fertilityandlocation-mayworkinoppositedirections。Acertainplotoflandmaybeveryfavourablylocatedandyetbeverypoorinfertility，andviceversa。Thiscircumstanceisimportant，foritexplainshowitispossiblethatbringingintocultivationthelandofacertaincountrymayequallywellproceedfromthebettertotheworselandasviceversa。Finally，itisclearthattheprogressofsocialproductioningeneralhas，ontheonehand，theeffectofeveningoutdifferencesarisingfromlocationasacauseofground-rent，bycreatinglocalmarketsandimprovinglocationsbyestablishingcommunicationandtransportationfacilities；ontheotherhand，itincreasesthedifferencesinindividuallocationsofplotsoflandbyseparatingagriculturefrommanufacturingandforminglargecentresofproduction，ontheonehand，whilerelativelyisolatingagriculturaldistricts，ontheother。

　　Forthepresent，however，weshallleavethispointconcerninglocationoutofconsiderationandconfineourselvestonaturalfertility。

　　Asidefromclimaticfactors，etc。，thedifferenceinnaturalfertilitydependsonthechemicalcompositionofthetopsoil，thatis，onitsdifferentplantnutritioncontent。However，assumingthechemicalcompositionandnaturalfertilityinthisrespecttobethesamefortwoplotsofland，theactualeffectivefertilitydiffersdependingonwhethertheseelementsofplantnutritionareinaformwhichmaybemoreorlesseasilyassimilatedandimmediatelyutilisedfornourishingthecrops。Hence，itwilldependpartlyuponchemicalandpartlyuponmechanicaldevelopmentsinagriculturetowhatextentthesamenaturalfertilitymaybemadeavailableonplotsoflandofsimilarnaturalfertility。Fertility，althoughanobjectivepropertyofthesoil，alwaysimpliesaneconomicrelation，arelationtotheexistingchemicalandmechanicallevelofdevelopmentinagriculture，and，therefore，changeswiththislevelofdevelopment。Whetherbychemicalmeanssuchastheuseofcertainliquidfertilisersonstiffclaysoilandcalcinationofheavyclayeysoilsormechanicalmeanssuchasspecialploughsforheavysoils，theobstacleswhichmadeasoilofequalfertilityactuallylessfertilecanbeeliminateddrainagealsobelongsunderthishead。Oreventhesequenceintypesofsoilstakenundercultivationmaybechangedthereby，aswasthecase，forinstance，withlightsandysoilandheavyclayeysoilatacertainperiodofdevelopmentinEnglishagriculture。

　　Thisshowsonceagainthathistorically，inthesequenceofsoilstakenundercultivation，onemaypassoverfrommorefertiletolessfertilesoilsaswellasviceversa。Thesameresultsmaybeobtainedbyanartificiallycreatedimprovementinsoilcompositionorbyamerechangeinagriculturalmethods。Finally，thesameresultmaybebroughtaboutbyachangeinthehierarchicalarrangementofthesoiltypesduetodifferentconditionsofthesubsoil，assoonasthelatterlikewisebeginstobetilledandturnedoverintotoplayers。Thisisinpartdependentontheemploymentofnewagriculturalmethodssuchasthecultivationoffodder-grassandinpartontheemploymentofmechanicalmeanswhicheitherturnthesubsoiloverintotoplayers，mixitwithtopsoil，orcultivatethesubsoilwithoutturningitup。

　　Alltheseinfluencesuponthedifferentialfertilityofvariousplotsoflandaresuchthatfromthestandpointofeconomicfertility，theleveloflabourproductivity，inthiscasethecapacityofagriculturetomakethenaturalsoilfertilityimmediatelyexploitable——acapacitywhichdiffersinvariousperiodsofdevelopment——isasmuchafactorinso-callednaturalsoilfertilityasitschemicalcompositionandothernaturalproperties。

　　Weassume，then，theexistenceofaparticularstageofdevelopmentinagriculture。Weassumefurthermorethatthehierarchicalarrangementofsoiltypesaccordswiththisstageofdevelopment，asis，ofcourse，alwaysthecaseforsimultaneouscapitalinvestmentsondifferentplotsofland。Differentialrentmaythenformeitheranascendingoradescendingsequence，foralthoughthesequenceisgivenforthetotalityofactuallycultivatedplotsofland，aseriesofmovementsleadingtoitsformationhasinvariablytakenplace。

　　Letusassumetheexistenceoffourkindsofsoil:A，B，C，D。

　　Letusfurthermoreassumethepriceofonequarterofwheat=&pound；3，or60shillings。Sincetherentissolelydifferentialrent，thispriceof60shillingsperquarterfortheworstsoilisequaltothepriceofproduction，thatis，equaltothecapitalplusaverageprofit。LetAhethisworstsoil，whichyieldsIquarter=60shillingsforeach50shillingsspent；hencetheprofitamountsto10shillings，or20%。

　　LetByield2quarters=120shillingsforthesameexpenditureThiswouldmean70shillingsofprofit，orasurplus-profitof60shillings。

　　LetCyield3quarters=180shillingsforthesameexpenditure；

　　totalprofit=130shillings；surplus-profit=120shillings。

　　LetDyield4quarters=240shillings=180shillingsofsurplus-profit。

　　Wewouldthenhavethefollowingsequence:

　　TABLEI

　　TypeofSoilProductCapitalAdvancedProfitRentQuar-tersShil-ingsQuar-tersShil-ingsQuar-tersShil-ingsABCD123460120180240505050501/611/621/631/61070130190——123——60120180

　　Total……10qrs600sh。6qrs360sh。Therespectiverentsare:D=190sh-l0sh。，orthedifferencebetweenDandA；C=130sh-l0sh。，orthedifferencebetweenCandA；B=7Osh-10sh。，orthedifferencebetweenBandA；andthetotalrentforB，C，D=6quarters=360

　　shillings，equaltothesumofthedifferencesbetweenDandA，CandA，BandA。

　　Thissequence，whichrepresentsagivenproductinagivenconditionmay，consideredabstractlywehavealreadyofferedthereasonswhythismayhethecaseinreality，descendfromDtoA，fromfertiletolessandlessfertilesoil，orrisefromAtoD，fromrelativelypoortomoreandmorefertilesoil，or，finally，mayfluctuate，i。e。，nowrising，nowdescending——forinstancefromDtoC，fromCtoA，andfromAtoB。

　　Theprocessinthecaseofadescendingsequencewasasfollows:

　　Thepriceofaquarterofwheatrosegraduallyfrom，say，15shillingsto60shillings。Assoonasthe4quartersproducedbyDwemayconsiderthese4quartersassomanymillionquartersnolongersufficed，thepriceofwheatrosetoapointwherethesupplyshortagecouldbeproducedbyC。Thatistosay，thepriceofwheatmusthaverisento20shillingsperquarter。Whenithadrisento30shillingsperquarter，Bcouldbetakenundercultivation，andwhenitreached60shillingsAcouldbetakenundercultivation；andthecapitalinvesteddidnothavetocontentitselfwitharateofprofitlowerthan20%。Inthismanner，arentwasestablishedforD，firstof5shillingsperquarter=20shillingsforthe4quartersproducedbyit；thenof15shillingsperquarter=60shillings，thenof45shillingsperquarter=180shillingsfor4quarters。

　　IftherateofprofitofDoriginallywassimilarly=20%，thenitstotalprofiton4quartersofwheatwasaJsobut10shillings，butthisrepresentedmoregrainwhenthepricewas15shillingsthanitdoeswhenthepriceis60shillings。Butsincethegrainentersintothereproductionoflabour-power，andpartofeachquarterhastomakegoodsomeportionofwagesandanotherconstantcapital，thesurplus-valueundertheseconditionswashigher，andthusotherthingsbeingequaltherateofprofittoo。Thematterofrateofprofitwillhavetobespeciallyanalysed，andingreaterdetail。

　　Ontheotherhand，ifthesequencewereinthereverseorder，thatis，iftheprocessinitiatedfromA，thenthepriceofwheatatfirstwouldriseabove60shillingsperquarterwhennewlandwouldhavetobetakenundercultivation。ButsincethenecessarysupplywouldbeproducedbyB，asupplyof2quarters，thepricewouldfallto60shillingsagain，forBproducedwheatatacostof30shillingsperquarter，butsolditat60shillingsbecausethesupplyjustsufficedtocoverthedemand。Thusarentwasformed，firstof60shillingsforB，andinthesamewayforCandD；itisassumedthroughoutthatthemarket-priceremainedat60

　　shillings，althoughCandDproducedwheathavinganactualvalueof20

　　and15shillingsperquarterrespectively，becausethesupplyoftheonequarterproducedbyAwasneededasmuchasevertosatisfythetotaldemand。

　　Inthiscase，theincreaseindemandabovesupply，whichwasfirstsatisfiedbyA，thenbyAandB，wouldnothavemadeitpossibletocultivateB，CandDsuccessivejy，butwouldmerelyhavecausedageneralextensionofthesphereofcultivation，andthemorefertilelandsmightonlylatercomeundercultivation。

　　Inthefirstsequence，anincreaseinpricewouldraisetherentanddecreasetherateofprofit。Suchadecreasemightbeentirelyorpartiallycheckedbycounteractingcircumstances。Thispointwillhavetobetreatedlaterinmoredetail。Itshouldnotbeforgottenthatthegeneralrateofprofitisnotdetermineduniformlyinallspheresofproductionbythesurplus-value。Itisnottheagriculturalprofitwhichdeterminesindustrialprofit，butviceversa。Butofthismoreanon。

　　Inthesecondsequencetherateofprofitoninvestedcapitalwouldremainthesame。Theamountofprofitwouldberepresentedbylessgrain；buttherelativepriceofgrain，comparedwiththatofothercommodities，wouldhaverisen。However，theincreaseinprofitwhereversuchanincreasetakesplace，becomesseparatedfromtheprofitintheformofrent，insteadofflowingintothepocketsofthecapitalisttenantfarmerandappearingasagrowingprofit。Thepriceofgrain，however，couldremainunchangedundertheconditionsassumedhere。

　　Thedevelopmentandgrowth，ofdifferentialrentwouldremainthesameforfixedaswellasforincreasingprices，andforacontinuousprogressionfromworsetobettersoilsaswellasforacontinuousretrogressionfrombettertoworsesoils。

　　Thusfarwehaveassumed:1thatthepricerisesinonesequenceandremainsstationaryintheother；2thatthereisacontinuousprogressionfrombettertoworsesoil，orfromworsetobettersoil。

　　Butnowletusassumethatthedemandforgrainrisesfromitsoriginalfigureof10to17quarters；furthermore，thattheworstsoilAisdisplacedbyanothersoilA，whichproduces11/3quartersatapriceofproductionof60shillings50sh。costpluslOsh。for20%profit，sothatitspriceofproductionperquarter=45shillings；or，perhaps，theoldsoilAmayhaveimprovedthroughcontinuousrationalcultivation，orbecultivatedmoreproductivelyatthesamecost，forinstancethroughtheintroductionofclover，etc。，sothatitsoutputwiththesameinvestmentofcapitalrisesto11/3quarters。LetusalsoassumethatsoiltypesB，CandDyieldthesameoutputaspreviously，butthatnewsoiltypeshavebeenintroduced，forinstance，A’withafertilitylyingbetweenA

　　andB，andalsoB’andB”withafertilitybetweenBandC。Weshouldthenobservethefollowingphenomena:

　　First:Thepriceofproductionofaquarterofwheat，oritsregulatingmarket-price，fallsfrom60shillingsto45shillings，orby25%。

　　Second:Thecultivationproceedssimultaneouslyfrommorefertiletolessfertilesoil，andfromlessfertiletomorefertilesoil。

　　SoilA’ismorefertilethanA，butlessfertilethanthehithertocultivatedsoilsB，CandD。B’andB”aremorefertilethanA’，A’andB，butlessfertilethanCandD。Thesequencethusproceedsincrisscrossfashion。

　　CultivationdoesnotproceedtosoilabsolutelylessfertilethanA，etc。，buttorelativelylessfertilesoilwithrespecttothehithertomostfertilesoiltypesCandontheotherhand，cultivationdoesnotproceedtosoilabsolutelymorefertile，buttorelativelymorefertilesoilwithrespecttothehithertoleastfertilesoilA，orAandB。

　　Thirdly:TherentonBfalls；likewisetherentonCandD；butthetotalrentalingrainrisesfrom6quartersto72/3；theamountofcultivatedandrent-yieldinglandincreases，andtheamountofproducerisesfrom10quartersto17。Theprofit，althoughitremainsthesameforA，risesifexpressedingrain，buttherateofprofititselfmightrise，becausetherelativesurplus-valuedoes。Inthiscase，thewage，i。e。，theinvestmentofvariablecapitalandthereforethetotaloutlay，isreducedbecauseoftbecheapeningofmeansofsubsistence。Thistotalrentalexpressedinmoneyfallsfrom360shillingsto345shillings。

　　TABLEII

　　TypeofSoilProductCapi-talInvest-mentProfitRentPriceofProductionperQuaterQuar-tersShil-ingsQuar-tersShil-ingsQuar-tersShil-ingsAA’BB’B”CD11/3

　　12/3

　　2

　　21/3

　　22/3

　　3

　　4607590105120135180505050505050502/95/98/912/915/918/928/9102540557085130——

　　1/3

　　2/3

　　1

　　11/3

　　12/3

　　22/3——153045607512045sh。

　　36sh。

　　30sh。

　　255/7*sh。

　　221/2sh。

　　20sh。

　　15sh。

　　Total……1772/3345*IntheGerman1894editionthisreads:252/7——Ed。

　　Letusdrawupthenewsequence。[Seep。655——Ed。J

　　Finally，ifonlysoiltypesA，B，CandDwerecultivatedasbefore，buttheirproductivenessroseinsuchawaythatAproduced2quartersinsteadof1quarter，B-4quartersinsteadof2，C-7quartersinsteadof3，andD-10quartersinsteadof4，sothatthesamecausesaffectthevarioustypesofsoildifferently，thetotalproductionincreasesfrom10quartersto23。Assumingthatdemandabsorbsthese23quartersthroughanincreaseinpopulationandafallinprices，weshouldobtainthefollowingresult:

　　TABLEIII

　　TypeofSoilProductCapitalInvestmentPriceofProductionperQuarterProfitRentQuar-tersShil-ingsQuar-tersShil-ingsQuar-tersShil-ingsABCD247106012021030050505050301584/761/321/351/381/310701602500258060150240

　　Total……2315450Thenumericalproportionsinthisandinothertablesarechosenatrandombuttheassumptionsarequiterational。

　　Thefirstandprincipalassumptionisthatanimprovementinagricultureactsdifferentlyupondifferentsoils，andinthiscaseaffectsthebesttypesofsoil，CandD，morethantypesAandB。Experiencehasshownthatthisisgenerallythecase，althoughtheoppositemayalsotakeplace。

　　Iftheimprovementaffectedthepoorersoilsmorethanthebetterones，rentonthelatterwouldhavefalleninsteadofrisen。Butinourtable，wehaveassumedthattheabsolutegrowthinfertilityofallsoiltypesissimultaneouslyaccompaniedbyanincreaseingreaterrelativefertilityofthebettersoiltypes，CandD；thismeansanincreaseinthedifferencebetweentheproductatthesamecapitalinvestment，andthusanincreaseindifferentialrent。

　　Thesecondassumptionisthattotaldemandkeepspacewiththeincreaseinthetotalproduct。First，oneneednotimaginesuchanincreasecomingaboutabruptly，butrathergradually-untilsequenceIIIisestablished。

　　Secondly，itisnottruethattheconsumptionofnecessitiesoflifedoesnotincreaseastheybecomecheaper。TheabolitionoftheCornLawsinEnglandprovedthereversetobethecaseF。Newman，LecturesonPoliticalEconomy，London，1851，p。158——Ed。；theoppositeviewstemssolelyfromthefactthatlargeandsuddendifferencesinharvests，whicharemereresultsofweather，bringaboutatonetimeanextraordinaryfall，atanotheranextraordinaryrise，ingrainprices。Whileinsuchacasethesuddenandshort-livedreductioninpricedoesnothavetimetoexertitsfulleffectupontheextensionofconsumption，theoppositeistruewhenareductionarisesfromtheloweringoftheregulatingpriceofproductionitself，i。e。，isofalong-termnature。Thirdly，apartofthegrainmaybeconsumedintheformofbrandyorbeer；andtheincreasingconsumptionofbothoftheseitemsisbynomeansconfinedwithinnarrowlimits。Fourthly，thematterdependsinpartupontheincreaseinpopulationandinpartonthefactthatthecountrymaybegrain-exporting，asEnglandstillwaslongafterthemiddleofthe18thcentury，sothatthedemandisnotsolelyregulatedwithintheconfinesofnationalconsumption。Finally，theincreaseandpricereductioninwheatproductionmayresultinmakingwheat，insteadofryeoroats，theprincipalarticleofconsumptionforthemasses，sothatthedemandforitmaygrowifonlyforthisreason，justastheoppositemaytakeplacewhenproductiondecreasesandpricesrise-Thus，undertheseassumptions，andwiththepreviouslyselectedratios，sequenceIIIyieldstheresultthatthepriceperquarterfallsfrom60

　　to30shillings，thatis，by50%；thatproduction，comparedtosequenceI，increasesfrom10to23quarters，i。e。，by130%；thattherentremainsfixedforsoilB，increasesby25%IntheGerman1894editionthisreads:

　　doubles——Ed。forC，andby331/3%Ibid。p22——Ed。

　　forD；andthatthetotalrentalincreasesfrom&pound；18to&pound；22

　　1/2，Ibid。22——Ed。，by25%。Ibid。:22

　　1/9%——Ed。

　　AcomparisonofthesethreetableswherebysequenceIistobetakentwice，risingfromAtoD，anddescendingfromDtoA，whichmaybeconsideredeitherasgivengradationsundersomestageofsociety，forinstance，asexistingsidebysideinthreedifferentcountries，orassucceedingoneanotherindifferentperiodsofdevelopmentwithinthesamecountry，shows:

　　1Thesequence，whencomplete，whateverthecourseofitsformativeprocessmayhavebeen，invariablyappearsasbeinginadescendingline；

　　forwhenanalysingrentthepointofdeparturewillalwaysbelandyieldingthemaximumrent，andonlyfinallydowecometolandyieldingnorent。

　　2Thepriceofproductionontheworstsoil，i。e。，whichyieldsnorent，isalwaystheoneregulatingthemarket-price，althoughthelatterinTableI，ifitssequencewereformedinanascendingline，onlyremainedfixedbecausebetterandbettersoilwasconstantlydrawnintocultivation。

　　Insuchacase，thepriceofgrainproducedonthebestsoilisaregulatingoneillsofarasitdependsuponthequantityproducedonsuchsoiltowhatextentsoiltypeAremainstheregulator。IfB，CandDshouldproducemorethandemandrequires，Awouldceasetobetheregulator。Storchhasthispointhazilyinmindwhenheadoptsthebestsoiltypeastheregulatingone。H。Storch，Coursd’econom’iepoilitique，ouExpositiondesprincipesqutdeterminentlaprosperitedesnations，TomeII，St-Petersbourg，1815，pp。78-79——Ed。Inthismanner，theAmericanpriceofgrainregulatestheEnglishprice。

　　3Differentialrentarisesfromdifferencesinthenaturalfertilityofthesoilwhichisgivenforeverygivenstageofagriculturaldevelopmentleavingasideforthepresentthequestionoflocation；inotherwords，fromthelimitedareaofthebestland，andfromthecircumstancethatequalamountsofcapitalmustbeinvestedonunequaltypesofsoil，sothatanunequalproductresultsfromthesameamountofcapital。

　　4Theexistenceofadifferentialrentandofagraduateddifferentialrentcandevelopequallywellinadescendingsequence，whichproceedsfrombettertoworsesoils，asinanascendingone，whichprogressesintheoppositedirectionfromworsetobettersoils；oritmaybebroughtaboutincheckeredfashionbyalternatingmovements。SequenceImaybeformedbyproceedingfromDtoA，orfromAtoD；sequenceIIcomprisesbothtypesofmovement。

　　5Dependingonitsmodeofformation，differentialrentmaydevelopalongwithastationary，risingorfallingpriceoftheproductsoftheland。Inthecaseofafallingprice，totalproductionandtotalrentalmayrise，andrentmaydeveloponhithertorentlessland，eventhoughtheworstsoilAmayhavebeendisplacedbyabetteroneormayitselfhaveimproved，andeventhoughtherentmaydecreaseonotherlandwhichisbetter，oreventhebestTableII；thisprocessmayalsobeconnectedwithafallintotalrentinmoney。Finally，atatimewhenpricesfallonaccountofageneralimprovementincultivation，sothattheproductoftheworstsoilanditspricedecrease，therentonsomeofthebettersoilsmayremainthesame，ormayfall，whileitmayriseonthebestones。

　　Nevertheless，thedifferentialrentofeverysoil，comparedwiththeworstsoil，depends，ifthedifferenceinquantityofproductsisgiven，upontheprice，say，ofaquarterofwheat。Butwhenthepriceisgiven，differentialrentdependsuponthemagnitudeofthedifferenceinquantityofproducts，andifwithanincreasingabsolutefertilityofallsoilsthatofthebetteronesgrowsrelativelymorethanthatoftheworseones，themagnitudeofthisdifferencegrowsproportionately。InthiswayseeTableI，whenthepriceis60shillings，therentonDisdeterminedbyitsdifferentialproductascomparedwithA；inotherwords，bythesurplusof3quarters。

　　Therentistherefore=3x60=l80shillings。ButinTableIII，wheretheprice=30

　　shillings，therentisdeterminedbythequantityofsurplus-productofDascomparedwithA=8quarters；wethereforeobtain8X30=240shillings。

　　Thistakescareofthefirstfalseassumptionregardingdifferentialrent-stillfoundamongWest，Malthus，andRicardo——narnely，thatitnecessarilypresupposesamovementtowardworseandworsesoil，oranever-decreasingfertilityofthesoil。[West]EssayontheApplication0fCapitaltoLand，London，1815。Maitbus，PrinciplesofPolittcalEconomy，London，4836。Maithus，AnInquiryintotheNatureandProgressofRent，andthePrinctplesbywhichitisregulated，London，1815。

　　Ricardo，OnthePrinciplesofPoliticalEconomy，andTaxation，Thirdedition，London，4824，Chap。11——Ed。Itcanbeformed，aswehaveseen，withamovementtowardbetterandbettersoil；itcanbeformedwhenabettersoiltakesthelowestpositionthatwasformerlyoccupiedbytheworstsoil；itcanbeconnectedwithaprogressiveimprovementinagriculture。

　　Thepreconditionismerelytheinequalityofdifferentkindsofsoil。Sofarastheincreaseinproductivityisconcerned，itassumesthattheincreaseinabsolutefertilityofthetotalareadoesnoteliminatethisinequality，buteitherincreasesit，leavesitunchanged，ormerelyreducesit。

　　Fromthebeginningtothemiddleofthe18thcentury，England’sgrainpricesconstantlyfellinspiteofthefallingpricesofgoldandsilver，whileatthesametimeviewingthisentireperiodasawhole

　　therewasanincreaseinrent，intheover-allamountofrent，intheareaofcultivatedland，inagriculturalproduction，andinpopulation。ThiscorrespondstoTableItakeninconjunctionwithTableIIinanascendingline，butinsuchawaythattheworstlandAiseitherimprovedoreliminatedfromthegrain-producingarea；however，thisdoesnotmeanthatitwasnotusedforotheragriculturalorindustrialpurposes。

　　Fromtheearly19thcenturydatetobespecifiedmoreprecisely

　　until1815thereisaconstantriseingrainprices，accompaniedbyasteadyincreaseinrent，intheover-allamountofrent，intheareaofcultivatedland，inagriculturalproduction，andinpopulation。ThiscorrespondstoTableIinadescendingline。Citesomesourceshereonthecultivationofinferiorlandinthatperiod。

　　InPetty’sandDavenant’stime，farmersandlandownerscomplainedaboutimprovementsandthebringingintocultivationofnewland；therentonbetterlandsdecreased，andthetotalamountofrentincreasedthroughtheextensionoftheareaoflandyieldingrent。

　　Thesethreepointsshouldbeillustratedlaterbyquotations；likewiseforthedifferenceinfertilityofvariouscultivatedsectionsoflandinaparticularcountry。

　　Regardingdifferentialrentingeneral，itistobenotedthatthemarket-valueisalwaysabovethetotalpriceofproductionofthetotalquantityofproducts。Asanexample，letustakeTableI。Tenqilartersoftotalproductaresoldfor600shillingsbecausethemarket-priceisdeterminedbythepriceofproductionofA，whichamountsto60shillingsperquarter。Buttheactualpriceofproductionis:

　　A……Iqr=60sh。Iqr=60sb。

　　B……2qrs=60sb。Iqr=30sh。

　　C……3qrs=60Sb。Iqr=20ahD……4qrs=60sh。Iqr=15ah。

　　10qrs=240sh。Average1qr=24sh。Theactualpriceofproductionofthese10quartersis240shillings；buttheyaresoldfor600shillings，i。e。，at250%ofthepriceofproduction。

　　TheactualaveragepriceforIquarteris24shillings；themarket-priceis60shillings，i。e。，also250%oftheproductionprice。

　　Thisisdeterminationbymarket-valueasitassertsitselfonthebasisofcapitalistproductionthroughcompetition；thelattercreatesafalsesocialvalue。Thisarisesfromthelawofmarketvalue，towhichtheproductsofthesoilaresubject。Thedeterminationofthemarket-valueofproducts，includingthereforeagriculturalproducts，isasocialact，albeitasociallyunconsciousandunintentionalone。Itisbasednecessarilyupontheexchange-valueoftheproduct，notuponthesoilandthedifferencesinitsfertility。Ifwesupposethecapitalistformofsocietytobeabolishedandsocietyorganisedasaconsciousandplannedassociation，thenthe10quarterswouldrepresentaquantityofindependentlabour-timeequaltothatcontainedin240shillings。Societywouldnotthenbuythisagriculturalproductattwoandahalftimestheactuallabour-timeembodiedinitandthebasisforaclassoflandownerswouldthusbedestroyed。Thiswouldhavethesameeffectasareductioninpriceoftheproducttothesameamountresultingfromforeignimports。Whileitis，therefore，truethat，byretainingthepresentmodeofproduction，butassumingthatthedifferentialrentispaidtothestate，pricesofagriculturalproductswould，everythingelsebeingequal，remainthesame，itisequallywrongtosaythatthevalueoftheproductswouldremainthesameifcapitalistproductionweresupersededbyassociation。Theidentityofthemarket-priceforcommoditiesofthesamekindisthemannerwherebythesocialcharacterofvalueassertsitselfonthebasisofcapitalistproductionand，ingeneral，anyproductionbasedontheexchangeofcommoditiesbetweenindividuals。Whatsocietyoverpaysforagriculturalproductsinitscapacityofconsumer，whatisaminusintherealisationofitslabour-timeinagriculturalproduction，isnowaplusforaportionofsociety，forthelandlords。

　　Asecondcircumstance，importantfortheanalysistobegivenunderIIofthenextchapter，isthefollowing:

　　Itisnotmerelyamatterofrentperacre，orperhectare，norgenerallyofadifferencebetweenthepriceofproductionandmarketprice，norbetweentheindividualandthegeneralpriceofproductionperacre，butitisalsoaquestionofhowmanyacresofeachtypeofsoilareundercultivation。Thepointofimportancehererelatesdirectlyonlytothemagnitudeoftherental，thatis，thetotalrentoftheentirecultivatedarea；butitservesusatthesametimeasastepping-stonetotheconsiderationofariseintherateo/rentalthoughthereisnoriseinprices，norincreaseinthedifferencesinrelativefertilityofthevarioustypesofsoilifpricesfall。

　　Wehadabove:

　　TABLEI

　　TypeofSoilAcresPriceofProductionProductRentinGrainRentinMoneyABCD1111&pound；3&pound；3&pound；3&pound；31qrs2qrs3qrs4qrs01qrs2qrs3qrs0&pound；3&pound；6&pound；9

　　Total……4acres10qrs6qrs&pound；18Nowletusassumethatthenumberofcultivatedacresisdoubledineverycategory。Wethenhave:

　　TABLEIaTypeofSoilAcresPriceofProductionProductRentinGrainRentinMoneyABCD2222&pound；6&pound；6&pound；6&pound；62qrs4qrs6qrs8qrs02qrs4qrs6qrs0&pound；6&pound；12&pound；18

　　Total……8acres20qrs12qrs&pound；36Letusassumetwomorecases。Supposeinthefirstcaseproductionexpandsonthetwopooresttypesofsoilinthefollowingmanner:

　　TABLEIbTypeofSoilAcresPriceofProductionProductRentinGrainRentinMoneyPerAcreTotalABCD4422&pound；3&pound；3&pound；3&pound；3&pound；3&pound；6&pound；15&pound；164qr8qrs6qrs8qrs04qrs4qrs6qrs&pound；0&pound；12&pound；12&pound；18

　　Total……12acres&pound；3626qrs14qrs&pound；42And，finally，letusassumeanunequalexpansionofproductionandcultivatedareaforthefoursoilcategories:

　　TABLEIcTypeofSoilAcresPriceofProductionProductRentinGrainRentinMoneyPerAcreTotalABCD1254&pound；3&pound；3&pound；3&pound；3&pound；3&pound；6&pound；15&pound；121qr4qrs15qrs16qrs02qrs10qrs12qrs&pound；0&pound；6&pound；30&pound；18

　　Total……12acres&pound；3636qrs24qrs&pound；72Inthefirstplace，therentperacreremainsthesameinallthesecases——I，Ia，lbandIc——for，infact，theresultofthesameinvestmentofcapitalperacreofthesamesoiltypehasremainedunchanged。Wehaveonlyassumedwhatistrueofanycountryatanygivenmoment；namely，thatvarioussoiltypesexistindefiniteratiostothetotalcultivatedarea。

　　Andwealsoassumedwhatisalwaystrueofanytwocountriesbeingcompared，orofthesamecountryatdifferentperiods，namely，thattheproportionsinwhichthetotalcultivatedareaisdistributedamongthedifferentsoiltypesvary。

　　IncomparingIawithIweseethatifthecultivationoflandinallfourcategoriesincreasesinthesameproportionadoublingofthecultivatedacreagedoublesthetotalproduction，andthatthesameappliestotherentingrainandmoney。

　　However，ifwecomparelbandthenIcwithI，weseethatinbothcasesatriplingoftheareaundercultivationoccurs。Itincreasesinbothcasesfrom4acresto12，butinlbclassesAandBcontributemosttotheincrease，withAyieldingnorentandByieldingthesmallestamountofdifferentialrent。Thus，outofthe8newlycultivatedacres，AandBaccountfor3each，i。e。，6together，whereasCandDaccountforIeach，i。e。，2together。Inotherwords，three-quartersoftheincreaseisaccountedforbyAandB，andonlyone-quarterbyCandD。Withthispremise，inlbcomparedwithIthetrebledareaofcultivationdoesnotresultinatrebledproduct，fortheproductdoesnotincreasefrom10to30，butonlyto26。Ontheotherhand，sinceaconsiderablepartoftheincreaseconcernsA，whichdoesnotyieldanyrent，andsincethemajorpartoftheincreaseonbettersoilsconcernsB，therentingrainrisesonlyfrom6to14quarters，andtherentinmoneyfrom&pound；18to&pound；42。

　　ButifwecompareIcwithI，wherethelandyieldingnorentdoesnotincreaseinareaandthelandyieldingaminimumrentincreasesbutslightly，whileCandDaccountforthemajorpartoftheincrease，wefindthatwhenthecultivatedareaistrebledproductionincreasesfrom10to36

　　quarters，i。e。，tomorethanthreetimesitsoriginalamount。Therentingrainincreasesfrom6to24quartersortofourtimesitsoriginalamount；andsimilarlymoney-rent，from&pound；18to&pound；72。

　　Inallthesecasesitisinthenatureofthingsthatthepriceoftheagriculturalproductremainsunchanged。Thetotalrentalincreasesinallcaseswiththeextensionofcultivation，unlessittakesplaceexclusivelyontheworstsoil，whichdoesnotyieldanyrent。Butthisincreasevaries。

　　Shouldthisextensioninvolvethebettersoiltypesandthetotaloutput，consequently，increasenotmerelyinproportiontotheexpansionofthearea，butrathermorerapidly，thentherentingrainandmoneyincreasestothesameextent。Shoulditbetheworstsoil，andthetypesofsoilclosetoit，thatareprincipallyinvolvedintheexpansionwherebyitisassumedthattheworstsoilrepresentsaconstanttype，thetotalrentaldoesnotincreaseinproportiontotheextensionofcultivation。Thus，giventwocountriesinwhichsoilA，yieldingnorent，isofthesamequality，therentalisinverselyproportionaltothealiquotpartrepresentedbytheworstsoilandtheinferiorsoiltypesinthetotalareaundercultivation，andthereforeinverselyproportionaltotheoutput，assumingequalcapitalinvestmentsonequaltotallandareas。Arelationshipbetweenthequantityoftheworstandthequantityofthebettercultivatedlandinthetotallandareaofagivencountrythushasanoppositeinfluenceonthetotalrentalthantherelationshipbetweenthequalityoftheworstcultivatedlandandthequalityofthebetterandbesthasontherentperacreand-othercircumstancesremainingthesame-onthetotalrental。Confusionbetweenthesetwopointshasgivenrisetoallkindsoferroneousobjectionsraisedagainstdifferentialrent。

　　Thetotalrental，then，increasesbythemereextensionofcultivation，andbytheconsequentgreaterinvestmentofcapitalandlabourintheland。

　　Butthemostimportantpointisthis:Althoughitisourassuniptionthattheratioofrentsperacreforthevariouskindsofsoilremainsthesame，andthereforealsotherateofrentconsideredwithreferencetocapitalinvestedineachacre，yetthefollowingistobeobserved:IfwecompareIawithI，thecaseinwhichthenumberofcultivatedacresandthecapitalinvestedinthemhavebeenproportionatelyincreased，wefindthatasthetotalproductionhasincreasedproportionatelytotheexpandedcultivatedarea，i。e。，asbothhavebeendoubled，sohastherental。Ithasrisenfrom&pound；18to&pound；36，justasthenumberofacreshasrisenfrom4to8。

　　Ifwetakethetotalareaof4acres，wefindthatthetotalrentalamountedto&pound；18andthustheaveragerent，includingthelandwhichdoesnotyieldanyrent，is&pound；4112。Suchacalculationmightbemade，say，byalandlordowningall4acres；andinthiswaytheaveragerentisstatisticallycomputedforawholecountry。Thetotalrentalof&pound；18

　　isobtainedbytheinvestmentofacapitalof&pound；10。Wecalltheratioofthesetwofigurestherateofrent；inthepresentcaseitistherefore180%。

　　ThesamerateofrentobtainsinIa，where8insteadof4acresarecultivated，butalltypesoflandhavecontributedtotheincreaseinthesameproportion。Thetotalrentalof&pound；36yieldsfor8acresandaninvestedcapitalof&pound；20anaveragerentof&pound；4112peracreandarateofrentof180%。

　　Butifweconsiderlb，wheretheincreasehastakenplacemainlyupontwoinferiorcategoriesofsoil，weobtainarentof&pound；42for12acres，oranaveragerentof&pound；3112peracre。Thetotalinvestedcapitalis&pound；30，andthereforetherateof’rent=140%。Theaveragerentperacrehasthusdecreasedby&pound；1，andtherateofrenthasfallenfrom180to140%。Herethenwehaveariseinthetotalrentalfrom&pound；18to&pound；42，butadropinaveragerentcalculatedperacreaswellasonthebasisofcapital；thedroptakesplaceparalleltoanincreaseinproduction，butnotproportionately。Thisoccurseventhoughtherentforalltypesofsoil，calculatedperacreaswellasonthebasisofcapitaloutlay，remainsthesame。Thisoccursbecausethree-quartersoftheincreaseisaccountedforbysoilA，whichdoesnotyieldanyrent，andsoilB，whichyieldsonlyminimumrent。

　　IfthetotalexpansioninCaselbhadtakenplacesolelyonsoilA，weshouldhave9acresonA，IacreonB，IacreonCandIacreonD。Thetotalrentalwouldbe&pound；18，thesameasbefore；theaveragerentforthe12acresthereforewouldbe&pound；1112peracre；andarentof&pound；18onaninvestedcapitalof&pound；30wouldgivearateofrentof60%。Theaveragerent，calculatedperacreaswellasonthebasisofinvestedcapital，wouldhavegreatlydecreased，whilethetotalrentalwouldnothaveincreased。

　　Finally，letuscompareIcwithIandIb。ComparedwithI，theareahasbeentrebled，andalsotheinvestedcapital。Thetotalrentalis&pound；72for12acres，or&pound；6peracre-asagainst&pound；4112

　　inCaseI。Therateofrentontheinvestedcapital&pound；72:&pound；30

　　is240%insteadof180%。Thetotaloutputhasrisenfrom10to36quarters。

　　Comparedwithlb，wherethetotalnumberofcultivatedacres，theinvestedcapital，andthedifferencesbetweenthecultivatedsoiltypesarethesame，butthedistributiondifferent，theoutputis36quartersinsteadof26quarters，theaveragerentperacreis&pound；6insteadof&pound；3112，andtherateofrentwithreferencetothesameinvestedtotalcapitalis240%insteadof140%。

　　NomatterwhetherweregardthevariousconditionsintablesIa，lbandIcasexistingsimultaneouslysidebysideindifferentcountries，orasexistingsuccessivelyinthesamecountry，wecometothefollowingconclusions:Solongasthepriceofgrainremainsunchangedbecausetheyieldontheworst，rentlesssoilremainsthesame；solongasthedifferenceinthefertilityofthevariouscultivatedtypesofsoilremainsthesame；

　　solongastherespectiveoutputsremainthesame，hence，givenequalcapitalinvestmentsonequalaliquotpartsacresofcultivatedareaineverytypeofsoil；solongastheratio，therefore，betweentherentsperacreoneachcategoryofsoilisconstant，andtherateofrentonthecapitalinvestedineachplotofthesamekindofsoilisconstant:First，therentalconstantlyincreaseswiththeextensionofcultivatedareaandwiththeconsequentincreasedcapitalinvestment，exceptforthecasewheretheentireincreaseisaccountedforbyrentlessland。Secondly，theaveragerentperacretotalrentaldividedbythetotalnumberofcultivatedacres

　　aswellastheaveragerateofrenttotalrentaldividedbytheinvestedtotalcapitalmayvaryveryconsiderably；and，indeed，bothchangeinthesamedirection，butindifferentproportionstoeachother。IfweleaveoutofconsiderationthecaseinwhichtheexpansiontakesplaceonlyontherentlesssoilA，wefindthattheaveragerentperacreandtheaveragerateofrentonthecapitalinvestedinagriculturedependontheproportionswhichthevariousclassesofsoilconstituteinthetotalcultivatedarea；

　　or，whatamountstothesamething，onthedistributionofthetotalemployedcapitalamongthekindsofsoilofvaryingfertility。Whethermuchorlittlelandiscultivated，andwhetherthetotalrentalisthereforelargerorsmallerwiththeexceptionofthecaseinwhichtheexpansionisconfinedtoA，theaveragerentperacre，ortheaveragerateofrentoninvestedcapital，remainsthesameaslongastheproportionsofthevariouscategoriesofsoilinthetotalcultivatedarearemainunchanged。Inspiteofanincrease，evenaveryconsiderableone，inthetotalrentalwiththeextensionofcultivationandexpansionofcapitalinvestment，theaveragerentperacreandtheaveragerateofrentoncapitaldecreasewhentheextensionofrentlessland，andlandyieldingonlylittledifferentialrent，isgreaterthantheextensionofthesuperioroneyieldinggreaterrent。Conversely，theaveragerentperacreandtheaveragerateofrentoncapitalincreaseproportionatelytotheextentthatbetterlandconstitutesarelativelygreaterpartofthetotalareaandthereforeemploysarelativelygreatershareoftheinvestedcapital。

　　Hence，ifweconsidertheaveragerentperacre，orhectare，ofthetotalcultivatedlandasisgenerallydoneinstatisticalworks，incomparingeitherdifferentcountriesinthesameperiod，ordifferentperiodsinthesamecountry，wefindthattheaveragelevelofrentperacre，andconsequentlytotalrental，correspondstoacertainextentalthoughbynomeansidentical，butratheramorerapidlyincreasingextenttotheabsolute，nottotherelative，fertilityofthesoilinagivencountry；

　　thatis，totheaverageamountofproducewhichityieldsfromthesamearea。Forthelargertheshareofsuperiorsoilsinthetotalcultivatedarea，thegreatertheoutputforequalcapitalinvestmentsonequallylargeareasofland；andthehighertheaveragerentperacre。Inthereversecasetheoppositetakesplace。Thus，rentdoesnotappeartobedeterminedbytheratioofdifferentialfertility，butbytheabsolutefertility，andthelawofdifferentialrentappearsinvalid。Forthisreasoncertainphenomenaaredisputed，oranattemptismadetoexplainthembynon-existingdifferencesinaveragepricesofgrainandinthedifferentialfertilityofcultivatedland，whereassuchphenomenaaremerelyduetothefactthattheratiooftotalrentaltototalareaofcultivatedlandortototalcapitalinvestedintheland-aslongasthefertilityoftherentlesssoilremainsthesameandthereforethepricesofproduction，andthedifferencesbetweenthevariouskindsofsoilremainunchanged-isdeterminednotmerelybytherentperacreortherateofrentoncapital，butquiteasmuchbytherelativenumberofacresofeachtypeofsoilinthetotalnumberofcultivatedacres；or，whatamountstothesamething，bythedistributionofthetotalinvestedcapitalamongthevarioustypesofsoil。Curiouslyenough，thisfacthasbeencompletelyoverlookedthusfar。Atanyrate，weseeandthisisimportantforourfurtheranalysisthattherelativeleveloftheaveragerentperacre，andtheaveragerateofrentortheratioofthetotalrentaltothetotalcapitalinvestedintheland，mayriseorfallbymerelyextensivelyexpandingcultivation，aslongaspricesremainthesame，thedifferentialfertilitiesofthevarioussoilsremainunaltered，andtherentperacre，orrateofrentforcapitalinvestedperacreineverytypeofsoilactuallyyieldingrent，i。e。，forallcapitalactuallyyieldingrent，remainsunchanged。

　　ItisnecessarytomakethefollowingadditionalpointswithreferencetotheformofdifferentialrentconsideredunderheadingI；theyalsoapplyinparttodifferentialrentII:

　　First，itwasseenthattheaveragerentperacre，ortheaveragerateofrentoncapital，mayincreasewithanextensionofcultivationwhenpricesarestationaryandthedifferentialfertilityofthecultivatedplotsoflandremainsunaltered。Assoonasallthelandinagivencountryhasbeenappropriated，andinvestmentsofcapitalinland，cultivation，andpopulationhavereachedadefinitelevel-allgivenconditionsassoonasthecapitalistmodeofproductionbecomestheprevailingoneandalsoencompassesagriculture-thepriceofuncultivatedlandofvaryingqualitymerelyassumingdifferentialrenttoexistisdeterminedbythepriceofthecultivatedplotsoflandofthesamequalityandequivalentlocation。

　　Thepriceisthesame-afterdeductingthecostofbringingthenewlandintocultivation-eventhoughthislanddoesnotyieldanyrent。Thepriceofthelandis，indeed，nothingbutthecapitalisedrent。Buteveninthecaseofcultivatedland，thepricepaysonlyforfuturerents，as，forinstance，whentheprevalentinterestrateis5%andtherentfortwentyyearsispaidatonetimeinadvance。Whenlandissold，itissoldaslandyieldingrent，andtheprospectivecharacteroftherentwhichishereconsideredasaproductofthesoil，butitonlyseemstobethat

　　doesnotdistinguishtheuncultivatedfromthecultivatedland。Thepriceoftheuncultivatedland，likeitsrentthepriceofwhichrepresentsthecontractedformofthelatterisquiteillusoryaslongasthelandisnotactuallyused。Butitisthusdeterminedaprioriandisrealisedassoonasapurchaserisfound。Hence，whiletheactualaveragerentinagivencountryisdeterminedbyitsactualaverageannualrentalandtherelationofthelattertothetotalcultivatedarea，thepriceoftheuncultivatedlandisdeterminedbythepriceofthecultivatedland，andisthereforebutareflectionofthecapitalinvestedinthecultivatedlandandtheresultsobtainedtherefrom。Sincealllandwiththeexceptionoftheworstyieldsrentandthisrent，asweshallseeundertheheadofdifferentialrentII，increaseswiththequantityofcapitalandcorrespondingintensityofcultivation，thenominalpriceofuncultivatedplotsoflandisthusformed，andtheythusbecomecommodities，asourceofwealthfortheirowners。Thisexplainsatthesametime，whythepriceoflandincreasesinawholeregion，evenintheuncultivatedpartOpdyke。Landspeculation，forinstance，intheUnitedStates，isbasedsolelyonthisreflectionthrownbycapitalandlabouronuncultivatedland。

　　Secondly，progressinextendingcultivatedlandgenerallytakesplaceeithertowardinferiorsoiloronthevariousgiventypesofsoilinvaryingproportions，dependingonthemannerinwhichtheyaremet。Extensiononinferiorsoilisnaturallynevermadevoluntarily，butcanonlyresultfromrisingprices，assumingacapitalistmodeofproduction，andcanonlyresultfromnecessityunderanyothermodeofproduction。However，thisisnotabsolutelyso。Poorsoilmaybepreferredtoarelativelybettersoilonaccountoflocation，whichisofdecisiveimportanceforeveryextensionofcultivationinyoungcountries；furthermore，eventhoughthesoilformationinacertainregionmaygenerallybeclassifiedasfertile，itmayneverthelessconsistofamotleyconfusionofbetterandworsesoils，sothattheinferiorsoilmayhavetobecultivatedifonlybecauseitisfoundintheimmediatevicinityofthesuperiorsoil。Ifinferiorsoilissurroundedbysuperiorsoil，thenthelattergivesittheadvantageoflocationincomparisonwithmorefertilesoilwhichisnotyet，orisabouttobecome，partofthecultivatedarea。

　　Thus，theStateofMichiganwasoneofthefirstWesternStatestobecomeanexporterofgrain。YetitsSoilonthewholeispoor。ButitsproximitytotheStateofNewYorkanditswater-waysviatheLakesandErieCanalinitiallygaveittheadvantageovertheStatesendowedbyNaturewithmorefertilesoil，butsituatedfarthertotheWest。TheexampleofthisState，ascomparedwiththeStateofNewYork，alsodemonstratesthetransitionfromsuperiortoinferiorsoil。ThesoiloftheStateofNewYork，particularlyitswesternpart，isincomparablymorefertile，especiallyforthecultivationofwheat。Thisfertilesoilwastransformedintoinfertilesoilbyrapaciousmethodsofcultivation，andnowthesoilofMichiganappearedasthemorefertile。”In1838，wheatenflourwasshippedatBuffalofortheWest；

　　andthewheat-regionofNewYork，withthatofUpperCanada，werethemainsourcesofitssupply。Now，afteronlytwelveyears，anenormoussupplyofwheatandflourisbroughtfromtheWest，alongLakeErie，andshippedupontheErieCanalfortheEast，atBuffaloandtheadjoiningportofBlackrock……TheeffectoftheselargearrivalsfromtheWesternStates-whichwereunnaturallystimulatedduringtheyearsofEuropeanfamine……hasbeentorenderwheatlessvaluableinwesternNewYork，tomakethewheatculturelessremunerative，andtoturntheattentionoftheNewYorkfarmersmoretograzinganddairyhusbandry，fruitculture，andotherbranchesofruraleconomy，inwhichtheythinktheNorth-Westwillbeunablesodirectlytocompetewiththem。”I。W。Johnston，NotesonNorthAmerica，London，1851，I，pp。220-23。

　　Thirdly，itisamistakenassumptionthatthelandincoloniesand，ingeneral，inyoungcountrieswhichcanexportgrainatcheaperprices，mustofnecessitybeofgreaternaturalfertility。Thegrainisnotonlysoldbelowitsvalueinsuchcases，butbelowitspriceofproduction，i。e。，belowthepriceofproductiondeterminedbytheaveragerateofprofitintheoldercountries。

　　Thefactthatwe，asJohnstonsaysp。223，”areaccustomedtoattachtheideaofgreatnaturalproductivenessandofboundlesstractsofrichland，tothosenewStatesfromwhichcomethelargesuppliesofwheatthatareannuallypouredintotheportofBuffalo，”isprimarilytheresultofeconomicconditions。TheentirepopulationofsuchanareaasMichigan，forinstance，isatfirstalmostexclusivelyengagedinfarming，andparticularlyinproducingagriculturalmassproducts，whichalonecanbeexchangedforindustrialproductsandtropicalgoods。Itsentiresurplusproductionappears，therefore，intheformofgrain。Thisfromtheoutsetsetsapartthecolonialstatesfoundedonthebasisofthemodernworld-marketfromthoseofearlier，particularlyancient，times。Theyreceivethroughtheworld-marketfinishedproducts，suchasclothingandtoolswhichtheywouldhavetoproducethemselvesunderothercircumstances。OnlyonsuchabasisweretheSouthernStatesoftheUnionenabledtomakecottontheirstaplecrop。Thedivisionoflabourontheworld-marketmakesthispossible。Hence，iftheyseemtohavealargesurplusproductionconsideringtheiryouthandrelativelysmallpopulation，thisisnotsomuchduetothefertilityoftheirsoil，northefruitfijlnessoftheirlabour，butrathertotheone-sidedformoftheirlabour，andthereforeofthesurplus-produceinwhichsuchlabourisincorporated。