The morning times. [volume] (Washington, D.C.) 1895-1897, 1896-08-30
2i !29!s Ge!gna
= The Times uiiaertakes NO reApodsi-
htlity for uny views Expressed In
this column.
RIcARDo's law OF RENT.

In common use. Weare accustomed tospehk
OF rent as the monthly price paid for the
use Ola house-apd lot, or as The annual
price paid for the use OF an improved farm
including buildings, fences and other prod
ucts of latror attached TO 1t.
But In its technical sense rent is paid for
the use OF land only and this may be doneby
capitaliziDs the annual returns which
the land may he estimated TO yield Its own,
er; and PAYING the present value OF the
successive returns in one or more sums, or
by paying the amount of each return an
nually. or ofteper, rs it accrues.
In the first Ease the land is said to he
purchased. and in the second rented. But
in either Gaze; rent constitutes the con-
sideration for which payment is made.
Land that will rent for nothing either
presently or psespactiveIy, has no selling
| value.
The reason why some pieces of land are
| rentable or salahle while others are not lies
In the fact that the former will yield
| gerproduct than can be obtained from the
latter by a given application OF labor and
| capital, or because of beauty of surround
Ings. heaithfulness OF locality, and the Ike,
| some lands are more desirable than others
| as pla ces or aboda
In tn is article we shall consider only such
lands as are used for producing wealth.
For tn Is purpose we define rent. according
to Ricardo. as the excess of wealth which
any given piece of land will yield owe that
| which may be acquired by the application
OF an equal amount of labor ald capital,
from the least productive land to which
any of the people find ii necessary to resort
To satisfy their wants and supply the mar
ket.
1t VIII be seen from this definition that
although TENT liz usually considered rs an in
cident OF the relation of landlord and tenant,
such relation must tie considered as the cOn-
sequence and not the cause OF rent. To
Illustrate this proposition, we begin by as
suring the existence of "a new community
located on lands OF varying fertility, de-
voted to the production OF wheat. and for
the SD Ike OF simplicity. we assume that in the
beginning, eaOh producer occupies home
stead Of his own and that each does his own
work and works as faithfully and eff
GENTLY as any OF the others.
GRADES OF LAND.
Instend of an Infinite diversity in the de-
grees OF fertility. such as we find in nature.
we select but four grades Of land. differing
IN productive capacity no more than lands
IN actual use are known to differ.
Let us select, then one tract that will
yield to given application OF labor and
capital twenty-four Bushels of wheat TO
the acre, the second. twenty two bushels.
the third. twenty bushels the fourth,
eighteen bushels.
II We assume all these c-ades cf land
10 be Offered freely by tie government for
homcsteads it is TO be presumed that
motives OF selfinterest will Induce first
settlers to occupy the grade that viii
yield the largest return to a given amount
Of effort This presumption does no vio-
lence To facts arising in such settlements,
whereas in prairie countries. cultivation
can be commenced with as small capital
on one tract az is necessary on another.
With these conui ors in mimi let US
begin ut that stagc OF development where
the population yet remains SO small that
II can he supplied with food and the
ordinary comforts of lif. in such commu-
mites by the cultivation or only part
or the NEST fertile Of the four tracts
OF land in question. Then, IL only part OF
this land he held by number OF com
pe;ing owners. each doing the same amount
aud quality OF work aud all selling their
surplus wheat ip the same market NO one
will have any, advantage over another
in the use OF laud. no rent will be paid,
and each may be said TO earn the same
wages. CIT
Now, let IS Advance to the stage in which
the population or this community has in
creased to such ,an extent that. by the Gus
tOmary modes OF cultivation, the entire
tract OF land of the first grade will not
yield enough wheat Tor the supply of the
people. Then one OF two things must
happen. Either the additional labor-al-
ways presumed from an increase OF popu-
lation-must be applied to the soil hereto
fore under cultivation and the requisite
food must thus. b. obtained by more in
tensive culture, or resort must be had to
the next lower grade OF land
Which OF these two courses Will prove
TO be most economical depends on the
answer to the question: Has cultivation
on the first grade of land reached the
point of diminishing returns?
We Introduce what is called the law
Of diminishing returns at this point, not
so much on account OF its importan in
the doctrine of rent. as on accoun of its
simplicity as one means of illustrating
the origin Of rent.
Common observation proves that two
!aborers can produce from square mile |
of arabic land more than twice as much AS
one; four, more than twice as much as two;
and possibly eight can produce twenty
times as much g the first ore alone. Such
increase in productive power Is due to the
economy OF CO operation. whereby two men |
may lie able TO do something easily aud |
rapidly, to which the strength Of single |
individual would be wholly inadequate.
The gaindue to eoinbined phi ysical strength |
was realized in the log rollings'' and |
house raisings'' among the early settlers |
i'll the forests of this country. where it was /
customary for neighbors to turn out and |
help each other for a day at time, with |
out a thought of making any charge for |
their services Those economists who |
imagine that unequal dist ribution of wealth !
is necessary TO cooperation by hiring or
other modes OF exchange are sin,ply ignorant |
of wellknown facts.
Among farmers accustomed to work for |
themselves it was no uncommon thing to |
see the owner of farm working for his
tenant few years ago, especially during
the planting and harvesting Seasons, when |
the owner, cultvating one part and the
tenant another part of the same IA rni found
a mutual gain by combining their work.
LAW OF DIMINISHING RETURNS.
But, however much may be gained by
effort, it is manifest that every
body cannot live from the proceeds of one
farm, even thought it be went ymi les square.
Hence there must he limit some where,
,iaI,i will