The Louisiana Democrat., 1891-10-21
Rent as Par, Of Cost.

tear of capital interest on capital.
taxes, interest on taxes, and rent Ifls
is a mistake, and, for single tax advo-
Gates, dangerous one to make. II
rent were an element of cost it would
enter into the price ofacommoditics.
thus shifting taxes on rentto the con-
sumer: andsa shrewd adversary, by
pointing ont the deduction, might easily
confuse the single tax advocate who
was guiltysof this false analysis
/. A little reflection will make it per-
fectly clearthat rentis no part either
of cost or price. The only distinctive
elements of cost are wages of labor
and, using the, term in its original sig
MITIGATION. blaclxmail. The former in-
cludes wear and tear of capital and in
terest on capital; the latter includes
taxes on labor, interest on. such taxes,
and the exactions of monopoly. But
normal rent IS neitherw wages nor black
mail. It is tie difference in value be-
tween the leastsproftable opportunities
to which labor resorts, and better op.
portunities. It's not pnrt of cost. be-
cause at this least productive point
there is no rent; aud it does not enter
into price, because price is determined
by cost of production.
The farmer who tillst soil naturally
fertile gets in the same market nomore
for llfs grain, bushel FOR bushel, than
the farmer who produces equally good
grain from less prolific soil; his adj
vantage is his ability to produce moro
grain with equal labor, and the value
of this advantage determines the differ
ence in rent between the two farms.
The merchant who occupies choice
location in, the heart of his business !,
district can charge no moro for the
same goods than one whose store is on
cheaper ground; his advantage is his
ability to sell more goods in given time
and with given labor, and this advan-
tage determines the difference in rent
between the two places. The smoker
who buys his cigar where rents arc
high pays no more, if as much, than
one who buys the same quality of cigar
where rents are low. The higher rents
of the former ,sace are paid, not by
means of higher prices, but in conse-
quences of quicker sales Wages, house
hire, value OF furniture and interest are
lower, relative to the volume of bust.
ness done, in places of high rents than
in places of low rents; and the accumula-
ton of these advantages constitutes the
difference in; rent
| tits. obvious that rent in these illus
trations is no part either of cost or
price. Supposing the poorer land in
all the illustrations to command no
rent, rent can not possibly be part of
the cost Of producing from it, or selling
on it; and as produce sells Mt cost (cost
of selling included), rent can be no part
of the.price. And since this is so OF
produce from the poorer land AMI of
goods sold at the poorer locations,
it must be so of those produced from
and sold at the better. Or, as
equal commodities sell iE the same
market at equal price, rent can not en-
ter into the price of one unless it en-.
tiers into the price of all; but it does
not enter into the price of preduce from
land bearing no rent, and, therefore,
it can not enter, into the price OF land
bearing rent. And, inasmuch as no
product can sell continuously below
cost the absence of rent as az element
of price proves It's absence as an ele-
tnent OF cost. For simplicity, we sup.
pose the poorer opportunities in these
illustrations to be rent free; but the
principle would be the same II they
were not, provided they commanded
Z lower rent than the better opnortuni.
ties, as they undoubtedly would.
Mr. Edward Atkinson. of Boston, is
one of the men who makes this mis-.
take of regarding rent as an clement OF
cost, and proclaims rather than argues
that land value tax would be shifted
Because merchants and manufacturers
charge up their rent MS one OF tho items
of their business expense, he ilfe,s
that rent as we'll rs wages is part oe
, the cost OF produce and that they em-
body 1t in the price of their goods ~
any man knows less about economic
principles thar Mr.. Atkinson, the aver.
age merchant o: manufacturer is that
. man; it is. there fore. quite appropriate
= that Mr. Atkinson shoull offer rs prloi
: of one of his vagaries the form of book
keeping adopted by merchants anrl
manufacturers. 1t is n modern Instance
of the blind leading the blind.
. When Mr. Atkinson shows that mer
! chants and manufacturers whose rent
charges are high. habitually sell the
. same quality of goods for more than j.
= got by competitors whose rent charget
are lover, his proof will be pertinent
!, / That which ~ now offers would bt
>. ruled out as irrelevant and incompetent
= in any court above the grade of o back
:, woods justice Of the peace. f'
=. Good Roads Without Taxation.
The chairman OF the New Yorl
: State Road improvement association
: has written a tract, '"The Gospel o
:. Good Roads, in which, among man,
;, other interesting facts, he shows tina
r. in Union county N. j., where sixt,
miles of Telforl road have been recent
~ ly built, farm lands have advanced il
value from $50 and S75 to 500 TN acre
= The authorities of that county stat
:, that the increase in land values ther
- - caused by new roads would pay si
!, times over the cost of every foot of sucl
- roads in the state. This is more tha
- single tax men would claim, thoug
= they recogniz, the principle and thei
agitation is based upon it. Every nc,
~ ~ fact that comes to light goesto prov
both the Justice and the efficiency @