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Agricultural　Department　of　the　United　States　has　shown　in　a　recent



report　that　the　value　of　farm　lands　decreases　in　exact　proportion



as　the　ratio　of　agriculture　to　other　industries　increases。　That　is；



where　all　the　labour　is　devoted　to　agriculture；　the　land　is　worth



less　than　where　only　half　of　the　people　are　farm　labourers；　and



where　only　a　quarter　of　them　are　so　engaged　the　farms　and　their



products　are　still　more　valuable。　It　is；　in　fact；　proved　by



statistics　that　diversified　industries　are　of　the　greatest　value　to



a　State；　and　that　the　presence　of　a　manufactory　near　a　farm



increases　the　value　of　the　farm　and　its　crops。　It　is　further



established　that；　dividing　the　United　States　into　four　sections　or



classes；　with　reference　to　the　ratio　of　agricultural　workers　to　the



whole　population；　and　putting　those　States　having　less　than　30　per



cent　of　agricultural　labourers　in　the　first　class；　all　having　over



30　and　less　than　50　in　the　second；　those　between　50　and　70　in　the



third；　and　those　having　70　or　more　in　the　fourth；　the　value　of



farms　is　in　inverse　ratio　to　the　agricultural　population；　and　that；



whereas　in　the　purely　agricultural　section；　the　fourth　class；　the



value　of　the　farms　per　acre　is　only　5　28c；　in　the　next　class　it　is



13　03c；　in　the　third　22　21c；　and　in　the　manufacturing　districts



40　91c。　This　shows　an　enormous　advantage　for　a　mixed　district。　Yet



not　only　is　the　land　more　valuable　　the　production　per　acre　is



greater；　and　the　wages　paid　to　farm　hands　larger。　Manufactures　and



varied　industries　thus　not　only　benefit　the　manufacturers；　but　are



of　equal　benefit　and　advantage　to　the　farmers　as　well。　The　latter



would；　therefore；　do　well　to　abandon　their　prejudice　against



factories；　which　really　increase　the　value　of　their　property



instead　of　depreciating　it。'　　TR。







Chapter　20







The　Manufacturing　Power　and　the　Agricultural　Interest











　　　　If　protective　duties　in　favour　of　home　manufactures　proved



disadvantageous　to　the　consumers　of　manufactured　goods　and　served



only　to　enrich　the　manufacturer；　this　disadvantage　would　especially



be　felt　by　the　landed　proprietor　and　the　agriculturist；　the　most



numerous　and　important　class　of　those　consumers。　But　it　can　be



proved　that　even　this　class　derives　far　greater　advantages　from　the



establishment　of　manufactures；　than　the　manufacturers　themselves



do；　for　by　means　of　these　manufactures　a　demand　for　greater　variety



and　for　larger　quantities　of　agricultural　products　is　created；　the



value　in　exchange　of　these　products　is　raised；　the　agriculturist　is



placed　in　a　position　to　utilise　his　land　and　his　powers　of　labour



more　profitably。　Hence　emanates　an　increase　of　rent；　of　profits；



and　wages；　and　the　augmentation　of　rents　and　capital　is　followed　by



an　increase　in　the　selling　value　of　land　and　in　the　wages　of



labour。



　　　　The　selling　value　of　landed　property　is　nothing　else　than



capitalised　rent；　it　is　dependent；　on　the　one　hand；　on　the　amount



and　the　value　of　the　rent；　but；　on　the　other　hand；　and　chiefly；　on



the　quantities　of　mental　and　material　capital　existing　in　the



nation。



　　　　Every　individual　and　social　improvement；　especially　every



augmentation　of　productive　power　in　the　nation；　but；　most　of　all；



of　the　manufacturing　power；　raises　the　amount　of　rents；　while　at



the　same　time　it　lessens　the　proportion　which　rent　bears　to　the



gross　produce。　In　an　agricultural　nation　little　developed　and



scantily　peopled；　e。g。　in　Poland；　the　proportion　of　rent　amounts　to



one…half　or　one　third　the　gross　produce。　in　a　well…developed；



populous；　and　wealthy　nation；　e。g。　England；　it　only　amounts　to



one…fourth　or　one…fifth　part　of　that　produce。　Nevertheless；　the



actual　worth　of　this　smaller　proportion　is　disproportionately



greater　than　the　worth　of　that　larger　proportion…in　money　value



especially；　and　still　more　in　manufactured　goods。　For　the　fifth



part　of　twenty…five　bushels　（the　average　produce　of　wheat　in



England）　equals　five　bushels；　the　third　part；　however；　of　nine



bushels　（the　average　produce　of　wheat　in　Poland）　amounts　only　to



three　bushels；　further；　these　five　bushels　in　England　are　worth　on



an　average　25s。　to　30s。；　while　these　three　bushels　in　the　interior



of　Poland　are　at　the　most　worth　8s。　to　9s。；　and　finally；　goods　in



England　are　at　least　twice　as　cheap　as　in　manufactured　Poland：



consequently　the　English　landed　proprietor　is　able　to　buy　for　his



30s。　of　money…rent　ten　yards　of　cloth；　but　the　Polish　landowner　for



his　9s。　of　rent　can　obtain　scarcely　two　yards；　from　which　it　is



evident　that　the　English　landed　proprietor　by　the　fifth　part　of　the



gross　produce　is　as　rentier　three　times；　and　as　consumer　of



manufactured　goods　five　times；　better　off　than　the　Polish　landowner



is　by　the　third　part　of　his　gross　produce。　But　that　farmers　and



agricultural　labourers　also　must　in　England　（especially　as



consumers　of　manufactured　goods）　be　disproportionately　better　off



than　in　Poland；　is　shown　by　the　fact　that　out　of　the　produce　of



twenty…five　bushels　in　England　twenty　bushels　go　for　sowing；　for



cultivation　of　the　field；　wages；　and　profits：　half　of　which　（or　ten



bushels）　devoted　to　the　last　two　items　have　an　average　value　of



60s。　or　twenty　yards　of　cloth　（at　3s。　per　yard）；　while　from　the



produce　of　nine　bushels　in　Poland　only　six　bushels　go　for　sowing；



cultivation　of　the　field；　profit；　and　wages；　half　of　which；　or



three　bushels；　devoted　to　the　last　two　items；　have　merely　a　value



of　10s。　to　12s。　or　three　and　a　half　yards　of　cloth。



　　　　Rent　is　a　chief　means　of　usefully　employing　material　capital。



Its　price。　therefore；　depends　also　on　the　quantity　of　the　capital



existing　in　the　nation　and　the　proportion　of　the　supply　of　it　to



the　demand。　By　the　surplus　of　the　capital　which　accumulates　in　a



manufacturing　nation　as　the　result　of　its　home　and　foreign



commerce；　by　the　low　rate　of　interest　which　there　exists；　and　the



circumstance　that　in　a　manufacturing　and　commercial　nation　a　number



of　individuals　who　have　become　wealthy　are　always　seeking　to　invest



their　surplus　capital　in　land；　the　selling　price　of　a　given　amount



of　rent　of　land　is　always　disproportionately　higher　in　such　a



nation　than　in　the　mere　agricultural　nation。　In　Poland　the　rent　of



land　is　sold　at　ten　or　twenty　years'　purchase；　in　England　at　thirty



or　forty　years'　purchase。　In　the　proportion　in　which　the　selling



value　of　the　rent　of　land　is　higher　in　the　manufacturing　and



commercial　nation　than　in　the　agricultural　nation；　so　also　is　the



selling　value　of　the　land　itself　higher　in　the　former　than　in　the



latter。　For　land　of　equal　natural　f