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prietors. So it is with all prosperous settlements. They extend themselves gradually, and each man benefits by his neighbour. What is done in London, and in New York, is done on a large scale in the United States. Emigration is unforced, and their colonies prosper to an extent that never before was known. Were they to attempt to establish colonies at the mouth of Columbia river, they would be in the situation of the man who should build a line of shops, two or three miles out of town, when the same expenditure of capital would have given him a similar number, for which occupants might immediately be found. The attempt to force emigration to distant lands, is as judicious as would be the attempt to enlarge London by the offer of a bounty upon all houses built at the distance of seven miles from Hyde-Park corner. The increase of facilities for locomotion within a few years, diminishes greatly the disadvantage of residing at a distance from the centre of trade, and, at some future period, less inconvenience will be experienced by those residing ten miles distant from the Exchange, than is now felt by those who are five miles distant. So will it be in regard to the lands on Columbia River, those of Australia, and of the Cape of Good Hope. Their time has not yet arrived, but when improvements in navigation shall have rendered them not more distant from Europe, as regards time, than America now is, and when the exchange of their productions can be effected at comparatively small expense, they may and will be occupied with advantage. Until then, the attempts at colonization can result only in waste of capital.

CHAPTER VII.

COMPARISON OF THE COST AND VALUE OF EXISTING LANDED CAPITAL.

WE come now to the consideration of the question, "what is the value of existing landed capital, compared to the labour that was required to produce it?" If the power to demand rent for its use is the result of a "necessity for having recourse to inferior soils, yielding a constantly decreasing return," those already appropriated must have had a constant tendency to attain a value exceeding that of the labour bestowed thereon; but if it is due exclusively to labour, the constant increase of the aids thereto, constituting capital, must have tended to diminish the quantity required for the production of a farm of any given productive power, and there must have been a constant tendency in that already existing to fall, in its labour value, below the cost of production. If we show that the land heretofore appropriated is not only not worth as much labour as it has cost to produce it in its present condition, but that it could not be reproduced by the labour that its present value would purchase, it will be obvious to the reader that its whole value is due to that which has been applied to its improvement. It might however be said, that it has, during a long time, yielded interest, which constitutes a deduction from the cost, and we will, therefore, pause a moment to consider how far that view would be correct. A pound of silver, that had been passing from hand to hand for five hundred years, would now command a very small quantity of labour compared with that which was required for its production. During the whole period it has yielded interest for its use, yet that interest is not an offset against the fall that it has experienced. It is still a pound of silver, and if the facility of producing it had not increased, it would now exchange for the same quantity of labour that it had done in times past.* If it were now

• A pound of silver, produced five hundred years since, would have experienced great loss from wear and tear. So would a farm have done. If the

obtained with increased difficulty, owing to the "necessity for having recourse to mines of inferior productive power," it would exchange for a greater quantity of labour than it had done, notwithstanding the interest that had been received for its use. In like manner, a farm, with its improvements, has paid rent, but that rent is not an offset against any fall in value it may have experienced. It is still capable of yielding a given return to a given quantity of labour, and will exchange for the same quantity that was required to produce it, unless the facility for obtaining such farms has increased. If such has been the case, its value in labour must have fallen, but if there has been a necessity for resorting to soils of inferior productive power, it will exchange for more labour than was necessary for its production. The value of Real Estate in Great Britain and Ireland is thus given:*

Land, farm-houses, &c.,

Scotland.

England.

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Ireland. £400,000,000

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owner of the first had applied, in each year, the earnings of a certain number of days' labour to replace the quantity worn off, and thus maintain its power of producing income, he would have done precisely as the owner of the second does, when he puts upon it the proceeds of a certain number of days' labour, in the form of manure, and thus prevents its deterioration. Had the silver remained idle during all the time, no loss from use would have taken place, but the owner would have been deprived of the income that might have been derived from it. Had the farm remained idle, no manure would have been necessary to maintain its fertility, but the owner would have had no income. In both cases, by using them as aids to labour, the owners have been enabled to enjoy many comforts and conveniences, of which they would have been otherwise deprived-to appropriate as much as was required to repair the loss that might take placeand probably to increase their capitals.

• Pebrer's Resources of the British Empire, page 351. Mr. Pebrer is not remarkable for the moderation of his calculations, but we are disposed to allow the highest valuation that can be made.

This valuation we believe to be excessive, but are willing to admit it. Property sells for 30 or 35 years' purchase of the rent, because of the difficulties that are interposed in the way of employing capital. Were trade as free as in the United States, capital would command a higher rate of interest, and property would sell at perhaps 20 or 25 years' purchase, reducing the nominal value of that of England to perhaps 6,000 millions of dollars, and even that sum would be still further reduced by striking out the item of waste lands, estimated at 110 millions of pounds, or 528 millions of dollars. They can have no value, unless they will yield rent. If they would do so, they would be cultivated. Not being so, it is obvious, that they not only will not pay rent, but that they cannot be made to pay wages to any one disposed to cultivate them.

The annual product of England is probably 280 millions of pounds sterling, or 1,350 millions of dollars, being less than one sixth of the amount above given as the value of real property of every description. It would, then, allow not six years employment of labour and capital to reproduce the above property, the result of the labour of many centuries.

Were even the value fully equal to the quantity of labour required for their reproduction,† and it must be admitted that it does not exceed that quantity, how vast is the difference between the number of days required now, when aided by the accumulated capital now existing, and that which must have

Mr. M'Culloch estimates the annual product of Great Britain at about 300 millions, and that of Ireland at less than 50 millions. Mr. Pebrer estimates the whole at 514 millions. This is unquestionably very extravagant. We have given, for the production of England alone, an amount almost as large as that of Mr. M'Culloch for England and Scotland united.

+ The following passage exhibits the manner in which capital, invested in buildings, tends to fall in value. Every improvement in the mode of construction diminishes the value of all previously existing.

The older class of farm buildings are, in very many instances, inconveniently 'situated, and ill suited to the purposes to which they are now applied. During 'the present century, however, improved houses and offices have been erected in 'most districts. But these have not unfrequently been constructed on a far too 'expensive scale; and numerous instances might be pointed out where the pre'sent rent obtained for farms, is little more than sufficient to pay the interest of the money expended on buildings.'-M'Culloch, Statistics of British Empire, Vol. I. p. 462.

been required at the time when a large portion of the improvements were made. The labour of six years would now produce as many buildings as that of 12 years would have done half a century since, and probably as many as the same number of persons could have produced in 20 years, a century since. Were the property of Great Britain worth as many days labour as have been employed in its production, the number of years would be exceedingly great. Instead of being so, the value is greatly inferior to that of the quantity of labour that would now be required for its reproduction. The labourer can now purchase land, or any other species of property, by giving the product of a fifth, or a tenth, of the quantity of labour originally required to produce it. He is in the situation of a member of a joint stock company, in which a constant addition is being made to the value of his interest.

Mr. M'Culloch estimates the rental of Great Britain at thirtyfour millions of pounds sterling, and supposes that one half of this sum is paid for the use of capital, and the remainder for the use of the natural and inherent powers of the soil. We think, however, that it must now be evident to the reader, that the whole amount is paid for the use of capital that has been invested for its improvement.

In the state of Ohio, the assessed value of lands, houses, mills, and all other improvements on land, is 69 millions,t being, as we are informed, about two fifths of their true value, which would, therefore, be 172 millions.

The average value of the product of labour and capital, cannot be estimated at less than one dollar, per day, per head of the labouring population. The whole value of the real estate of Ohio is therefore 172 millions of days' labour, being equal to that of about 570,000 men for one year. The state contains

* Estimating the whole rental of Great Britain at thirty-four millions, if we 'set apart seventeen millions as real rent, and regard the remaining seventeen 'millions as interest on account of buildings, fences, drains, roads, and other 'improvements of the soil, we shall certainly be within the mark.'-Statistical Account of the British Empire, Vol. I. p. 534.

+ Report of the Auditor of State, 1836.

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