| OCR Text |
Show 174 OF THE H.ENT OF LAND. [CH. III. In this case cultivation has been extended, and rents have risen, although one of the instruments of production, capital, has been dearer. In the san1e manner a fall of profits, and in1- provements in agriculture, or even one of then1 separately, n1ight raise rents, notwithstanding a rise of wages. , It is further evident, that no fresh land can be taken into cultivation till rents have risen, or would allow of a rise upon what is already cultivated. Land of an inferior quality requires a great quantity of capital to make it yield a given produce; and if the actual price of this produce be not such as fully to compensate the cost of production, including profits, the land, n1ust ren1ain uncultivated. It n1atters not whether this colnpensation is effected by an increase in the n1oney price of raw produce, \vithout a proportionate increase in the money price of the instrun1ents of production; or by a decrease in the price of the instru1nents of production, without a proportionate decrease in the price of produce. What is absolutely necessary is, a greater relati'Ve cheapness of the instruments of production, to n1ake up for the quantity of them required to obtain a given produce from poor land. But whenever, by the operation of one or n1ore of the causes before n1entioned, the instrutnents of production becon1e cheaper, and the difference between the price of produce and the· expenses of cultivation increases, rents naturally rise. It fol- SEC. 111.] OF THE RENT OF LAND. 175 1ows therefore as a direct and necessary consequence, that it can never answer to take fresh land of a poorer quality into cultivation till rents have risen, or \Vould allo\v of a rise, on what is already cultivated. It is ,equally true, that \Vithout the same tendency to a rise of rents,* it cannot ansvver to lay out fresh capital in the improven1ent of old land; at least upotl the supposition, that each fartn is already furnished \vith as much capital as can be laid out to advantage, according to the actual rate of profits. It is only necessary to state this proposition to n1ake its truth appear. It certainly n1ay happen, (and I fear it happens very frequently) that farn1ers are not provided "vith all the capital "vhich could be etnployed upon their farn1s at the actual rate of agricultural profits. But supposing they are so provided, it in1plies distinctly, that more could not be applied without loss, till, by the operation of one or n1ore of the causes above enumerated, rents had tended to rise. It appears then, that the power of extending cultivation and increasing produce, both by the cultivation of fresh land and the improvement of the old, depends entirely upon the existence of such prices, con1pared with the expense of pro- * Rents may be said to have a tendency to rise, when more capital is ready to be laiu out upon the old land, but cannot be laid out without diminished returns. \Vhen profits fall in manufactures and commerce from the diminished price of goods, capitalists will be ready to give higher rents for the old farms. |
