The Nature of Rent [18]
necessities of the owners of capital. But they take a different course in the progress of society from rents, and it is necessary, in general, to keep them quite separate.
10. According to the calculations of Mr Colquhoun, the value of our trade, foreign and domestic,and of our manufactures, exclusive of raw materials, is nearly equal to the gross value derived from the land. In no other large country probably is this the case. P. Colquhoun, Treatise on the wealth, power, and resources of the British Empire, 2nd ed. (1815), p. 96. The whole annual produce is estimated at about 430 millions, and the products of agriculture at about 216 millions.
11. To the honour of Scotch cultivators, it should be observed, that they have applied their capitals so very skilfully and economically, that at the same time that they have prodigiously increased the produce, they have increase the landlord's proportion ot it. The difference between the landlord's share of the produce in Scotland and in England is quite extraordinary -- much greater than can be accounted for, either by the natural soil or the absence of tithes and poor's rates. See Sir John Sinclair's valuable An account of husbandry in Scotland (Edinburgh, 1812) and General Report, 4 vols. (Edinburgh, 1814) not long since published -- works replete with the most useful and interesting information on agricultural subjects.
12. See BPP, 1814-5, V, p. 66, evidence before the House of Lords, given by Arthur Young.
13. In all our discussions we should endeavour, as well as we can, to separate that part of high price, which arises from excess of currency, from that part, which is natural, and arises from permanent causes. In the whole course of this argument, it is particularly necessary to do this.
14. It will be observed, that l have said in a progressive country; that is, in a country which requires yearly the employment of a greater capital on the land, to support an increasing population. If there were no question about fresh capital, or an increase of people, and all the land were good, it would not then be true that corn must be sold at its necessary price. The actual price might be diminished; and if the rents of land were diminished in proportion. the cultivation might go on as before, and the same quantity be produced lt very rarely happens, however, that all the lands of a country actually occupied are good, and yield a good net rent. And in all cases, a fall of prices must destroy agricultural capital during the currency of leases; and on their renewal there would not be the same power of production.
15. This conclusion may appear to contradict the doctrine of the level of the precious metals. And so it does, if by level be meant level of value estimated in the usual way. I consider the doctrine, indeed, as quite unsupported by facts, and the comparison of the precious metals to water perfectly inaccurate. The precious metals are always tending to a state of rest, or such a state of things as to make their movement unnecessary. But when this state of rest has been nearly attained, and the exchanges of all countries are nearly at par, the value of the precious metals in different countries, estimated in corn and labour, or the mass of commodities, is very far indeed from being the same. To be convinced of this, it is only necessary to look at England, France, Poland, Russia, and India, when the exchanges are at par. That Adam Smith. who proposes labour as the true measure of value at all times and in all places, could look around him, and vet say that the precious metals were always the highest in value in the richest countries, has always appeared to me most unlike his usual attention to found his theories on facts.
16. Even upon the system of importation, in the actual state and situation of the countries of Europe, higher prices must accompany superior and increasing wealth.
17. We must not be so far deceived by the evidence before Parliament, relating to the want of connection between the prices of corn and of labour, as to suppose that they are
10. According to the calculations of Mr Colquhoun, the value of our trade, foreign and domestic,and of our manufactures, exclusive of raw materials, is nearly equal to the gross value derived from the land. In no other large country probably is this the case. P. Colquhoun, Treatise on the wealth, power, and resources of the British Empire, 2nd ed. (1815), p. 96. The whole annual produce is estimated at about 430 millions, and the products of agriculture at about 216 millions.
11. To the honour of Scotch cultivators, it should be observed, that they have applied their capitals so very skilfully and economically, that at the same time that they have prodigiously increased the produce, they have increase the landlord's proportion ot it. The difference between the landlord's share of the produce in Scotland and in England is quite extraordinary -- much greater than can be accounted for, either by the natural soil or the absence of tithes and poor's rates. See Sir John Sinclair's valuable An account of husbandry in Scotland (Edinburgh, 1812) and General Report, 4 vols. (Edinburgh, 1814) not long since published -- works replete with the most useful and interesting information on agricultural subjects.
12. See BPP, 1814-5, V, p. 66, evidence before the House of Lords, given by Arthur Young.
13. In all our discussions we should endeavour, as well as we can, to separate that part of high price, which arises from excess of currency, from that part, which is natural, and arises from permanent causes. In the whole course of this argument, it is particularly necessary to do this.
14. It will be observed, that l have said in a progressive country; that is, in a country which requires yearly the employment of a greater capital on the land, to support an increasing population. If there were no question about fresh capital, or an increase of people, and all the land were good, it would not then be true that corn must be sold at its necessary price. The actual price might be diminished; and if the rents of land were diminished in proportion. the cultivation might go on as before, and the same quantity be produced lt very rarely happens, however, that all the lands of a country actually occupied are good, and yield a good net rent. And in all cases, a fall of prices must destroy agricultural capital during the currency of leases; and on their renewal there would not be the same power of production.
15. This conclusion may appear to contradict the doctrine of the level of the precious metals. And so it does, if by level be meant level of value estimated in the usual way. I consider the doctrine, indeed, as quite unsupported by facts, and the comparison of the precious metals to water perfectly inaccurate. The precious metals are always tending to a state of rest, or such a state of things as to make their movement unnecessary. But when this state of rest has been nearly attained, and the exchanges of all countries are nearly at par, the value of the precious metals in different countries, estimated in corn and labour, or the mass of commodities, is very far indeed from being the same. To be convinced of this, it is only necessary to look at England, France, Poland, Russia, and India, when the exchanges are at par. That Adam Smith. who proposes labour as the true measure of value at all times and in all places, could look around him, and vet say that the precious metals were always the highest in value in the richest countries, has always appeared to me most unlike his usual attention to found his theories on facts.
16. Even upon the system of importation, in the actual state and situation of the countries of Europe, higher prices must accompany superior and increasing wealth.
17. We must not be so far deceived by the evidence before Parliament, relating to the want of connection between the prices of corn and of labour, as to suppose that they are