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  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,métayer,orryotcountriesextensivechangesmust

  takeplaceinthewholeframeworkofsocietybeforethepeasantsbecomecapitalistsandindependentfarmers。Theserfhas

  manystagestogothroughbeforehearrivesatthispoint,andwehaveseenhowharditistoadvanceonestep。Themétayer

  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。MostofthecountriesoccupiedbyMétayers,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,theEuthanasiaofMétayerRentsinFrance,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。

  AccordingtothemodeofholdingthecultivatorshavebeenclassedasMétayers,Serfs,Ryots,Cottiers。

  ThesearethuscharacterizedbyMrJones,whointroducedthisclassificationintoPoliticalEconomy。TheMétayerisapeasanttenant,extractinghisownwagesandsubsistencefromthesoil。Hepaysaproducerenttotheowneroftheland。Thelandlordsupplieshimwithstock。`ThismodeoftenureprevailslargelyinFranceandItaly,andwasthecommontenureamongtheGreeksandRomans:(Métayers=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。Ispeakofthemétayer

  system。Underthis,thelandisdivided,insmallfarms,amongsinglefamilies,thelandlordgenerallysupplyingthestock

  whichtheagriculturalsystemofthecountryisconsideredtorequire,andreceiving,inlieuofrentandprofit,afixed

  proportionoftheproduce。Thisproportion,whichisgenerallypaidinkind,isusually,(asisimpliedinthewordsmétayer,

  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。\"

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