If the leading idea of this work is well founded, the relations of mankind with the external world must be viewed in this way: God created the earth. On it, and within it, he has placed a multitude of things which are useful to man, inasmuch as they are adapted to satisfy his wants. God has, besides, endued matter with forces—gravitation, elasticity, porosity, compressibility, heat, light, electricity, crystallization, vegetable life. He has placed man in the middle of these materials and forces, which he has delivered over to him gratuitously. Men set themselves to exercise their activity upon these materials and forces; and in this way they render service to themselves. They also work for one another, and in this way render reciprocal services. These services, compared by the act of exchange, give rise to the idea of Value, and Value to that of Property. Each man, then, becomes an owner or proprietor in proportion to the services he has rendered. But the materials and forces given by God to man gratuitously, at the beginning, have continued gratuitous, and are and must continue to be so through all our transactions; for in the estimates and appreciations to which exchange gives rise, the equivalents are human services, not the gifts of God. Hence it follows that no human being, so long as transactions are free, can ever cease to be the usufructuary of these gifts. A single condition is laid down, which is, that we shall execute the labour necessary to make them available to us, or, if any one makes this exertion for us, that we make for him an equivalent exertion. If this account of the matter be true, Property is indeed unassailable. The universal instinct of mankind, more infallible than the lucubrations of any individual, had adopted this view of the subject without refining upon it, when theory began to scrutinize the foundations of Property. Theory unhappily began in confusion, mistaking Utility for Value, and attributing an inherent value, independent of all human service, to the materials or forces of nature. From that moment property became unintelligible, and incapable of justification. For utility is the relation between commodities and our organization. It necessarily implies neither efforts, nor transactions, nor comparisons. We can conceive of it per se, and in relation to man in a state of isolation. Value, on the contrary, is a relation of man to man. To exist at all, it must exist in duplicate. Nothing isolated can be compared. Value implies that the person in possession of it does not transfer it except for an equivalent value. The theory, then, which confounds these two ideas, takes for granted that a person, in effecting an exchange, gives pretended value of natural creation for true value of human creation, utility which exacts no labour for utility which does exact it; in other words, that he can profit by the labour of another without working himself. Property, thus understood, is called first of all a necessary monopoly, then simply a monopoly,—then it is branded as illegitimate, and last of all as robbery. Landed Property receives the first blow, and so it should. Not that natural agents do not bear their part in all manufactures, but these agents manifest themselves more strikingly to the eyes of the vulgar in the phenomena of vegetable and animal life, in the production of food, and of what are improperly called matiÈres premiÈres [raw materials], which are the special products of agriculture. Besides, if there be any one monopoly more revolting than another, it is undoubtedly a monopoly which applies to the first necessaries of life. The confusion which I am exposing, and which is specious in a scientific view, since no theorist I am acquainted with has got rid of it, becomes still more specious when we look at what is passing around us. We see the landed Proprietor frequently living without labour, and we draw the conclusion, which is plausible enough, that “he must surely be remunerated for something else than his work.” And what can this something else be, if not the fecundity, the productiveness, the co-operation of the soil as an instrument? It is, then, the rent of land which we must brand, in the language We must admit that the authors of this theory have encountered a fact which must have powerfully tended to mislead them. Few land estates in Europe have escaped from conquest and all its attendant abuses; and science has confounded the violent methods by which landed property has been acquired with the methods by which it is naturally formed. But we must not imagine that the false definition of the word value tends only to unsettle landed property. Logic is a terrible and indefatigable power, whether it sets out with a good or a bad principle! As the earth, it is said, makes light, heat, electricity, vegetable life, etc., co-operate in the production of value, does not capital in the same way make gravitation, elasticity, the wind, etc., concur in producing value? There are other men, then, besides agriculturists who are paid for the intervention of natural agents. This remuneration comes to capitalists in the shape of Interest, just as it comes to proprietors in the shape of Rent. War, then, must be declared against Interest as it has been against Rent! Property has had a succession of blows aimed at it in the name of this principle, false as I think, true according to the Economists and Egalitaires, namely, that natural agents possess or create value. This is a postulate upon which all schools are agreed. They differ only in the boldness or timidity of their deductions. The Economists say that property (in land) is a monopoly, but a monopoly which is necessary, and which must be maintained. The Socialists say that property (in land) is a monopoly, but a monopoly which is necessary, and which must be maintained,—and they demand compensation for it in the shape of right to employment [le droit au travail]. The Communists and Egalitaires say that property (in general) is a monopoly, and must be destroyed. For myself, I say most emphatically that PROPERTY IS NOT A MONOPOLY. Your premises are false, and your three conclusions, although they differ, are false also. Property is not a monopoly, and consequently it is not incumbent on us either to tolerate it by way of favour, or to demand compensation for it, or to destroy it. Let us pass briefly in review the opinions of writers of various schools on this important subject. The English Economists lay down this principle, upon which they appear to be unanimous, that value comes from labour. Were they consistent in their use of terms, it might be so; but are they consistent? The reader will judge. He will see whether they Adam Smith.—“In agriculture nature labours along with man; and although her labour costs no expense, its produce has its value, as well as that of the most expensive workmen.”55 Here we have nature producing value. The purchaser of corn must pay for it, although it has cost nothing to anybody, not even labour. Who then dares come forward to demand this pretended value? Substitute for that word the word utility, and all becomes clear, Property is vindicated, and justice satisfied. “This rent,” proceeds Smith, “may be considered as the produce of those powers of nature, the use of which the landlord lends to the farmer..... It (rent!) is the work of nature, which remains after deducting or compensating everything which can be regarded as the work of man. It is seldom less than a fourth, and frequently more than a third of the whole produce. No equal quantity of productive labour employed in manufactures can ever occasion so great a reproduction. In them nature does nothing; man does all.”56 Is it possible in as few words to include a greater number of dangerous errors? At this rate a fourth or a third part of the value of human subsistence is due exclusively to the power of nature. And yet the proprietor is paid by the farmer, and the farmer by the corn-consumer, for this pretended value which remains after the work of man has been remunerated. And this is the basis on which it is desired to place Property! And, then, what becomes of the axiom that all value comes from labour? Next, we have nature doing nothing in Manufactures! Do gravitation, the elasticity of the air, and animal force, not aid the manufacturer? These forces act in our manufactures just as they act in our fields; they produce gratuitously, not value, but utility. Were it otherwise, property in capital would be as much exposed to the attacks of Communism as property in land. Buchanan.—This commentator, adopting the theory of his master on Rent, is pressed by logic to blame him for having represented it as advantageous: “In dwelling on the reproduction of rent as so great an advantage to society, Smith does not reflect that rent is the effect of high price, and that what the landlord gains in this way, he gains at the expense of the community at large. There is no absolute gain to society by the reproduction of rent. It is only one class profiting at the expense of another class.”57 Here the logical deduction makes its appearance—rent is an injustice. Ricardo.—“Rent is that portion of the produce of the earth which is paid to the landlord for the use of the original and indestructible powers of the soil.” And, in order that there may be no mistake, the author adds: “It is often confounded with the interest and profit of capital..... It is evident that a portion only of the money annually to be paid for the improved farm would be for the original and indestructible powers of the soil, the other portion would be paid for the use of the capital which had been employed in ameliorating the quality of the land, and in erecting such buildings as were necessary to secure and preserve the produce. . .. In the future pages of this work, then, whenever I speak of the rent of land, I wish to be understood as speaking of that compensation which is paid to the owner of land for the use of its original and indestructible powers.”58 M’Culloch.—“What is properly termed Rent is the sum paid for the use of the natural and inherent powers of the soil. It is entirely distinct from the sum paid for the use of buildings, enclosures, roads, or other amelioration. Rent is then always a monopoly.” Scrope.—“The value of land, and its power of yielding Rent, are due to two circumstances,—1st, The appropriation of its natural powers; 2d, The labour applied to its amelioration.” We are not kept long waiting for the consequence: “Under the first of these relations rent is a monopoly. It restricts our usufruct and enjoyment of the gifts which God has given to men for the satisfaction of their wants. This restriction is just, only in as far as it is necessary for the common good.” In what perplexity must those good souls be landed who refuse to admit anything to be necessary which is not just? Scrope ends with these words: “When it goes beyond this point, it must be modified on the same principle which caused it to be established.” It is impossible for the reader not to perceive that these authors lead us to a negation of Property, and lead us to it very logically, in setting out with the proposition that the proprietor is paid for the gifts of God. Here we have rent held up as an injustice established by Law under the pressure of necessity, and which laws may modify or destroy under the pressure of another necessity. The Communists have never gone farther than this. Senior.—“The instruments of production are labour and natural agents. Natural agents having been appropriated, proprietors charge for their use under the form of Rent, which is the recompense of no sacrifice whatever, and is received by those who have neither laboured nor put by, but who merely hold out their hands to accept the offerings of the rest of the community.” After giving this heavy blow to property, Mr Senior explains that one portion of Rent resolves itself into the Interest of Capital, and then adds: “The surplus is taken by the proprietor of the natural agent, and is his reward, not for having laboured or abstained, but simply for not having withheld what he was able to withhold; for having permitted the gifts of nature to be accepted.” You will observe that this is still the same theory. The proprietor is supposed to interpose himself between the hungry mouth and the food which God has vouchsafed under the condition of This theory of the English Economists, which has been farther developed by Mill, Malthus, and others, we are sorry to find making its way also on the Continent. “When a franc’s worth of seed,” says Scialoja, “produces a hundred francs’ worth of corn, this augmentation of value is mainly due to the soil.” This is to confound Utility with value; He might just as well have said, when water which costs only one sou at ten yards’ distance from the spring, costs ten sous at 100 yards, this augmentation of value is due in part to the intervention of nature. Florez Estrada.—“Rent is that portion of the agricultural product which remains after all the costs of production have been defrayed.” Then the proprietor receives something for nothing. The English Economists all set out by announcing the principle that value comes from labour, and they are guilty of inconsistency when they afterwards attribute value to the inherent powers of the soil. The French Economists in general make value to consist in utility; but, confounding gratuitous with onerous utility, they have not the less assisted in shaking the foundation of Property. J. B. Say.—“Land is not the only natural agent which is productive, but it is the only one, or almost the only one, that man has been able to appropriate. The waters of the sea and of our rivers, by their aptitude to impart motion to machines, to afford nourishment to fishes, to float our ships, are likewise possessed of productive power. The wind and the sun’s rays work for us; but happily no one has been able to say, The wind and the sun are mine, and I must be paid for their services.” M. Say appears from this to lament that any one should be able to say, The land belongs to me, and I must be paid for the service which it renders. Happily, say I, it is no more in the power of the proprietor to charge for the services of the soil than for the services of the sun and the wind. “The earth,” continues M. Say, “is an admirable chemical workshop, in which are combined and elaborated a multitude of materials and elements which are produced in the shape of grain, fruit, flax, etc. Nature has presented to man, gratuitously, this vast workshop divided into a great number of compartments fitted for various kinds of production. But certain individual members of society have appropriated them, and proclaimed,—This compartment is mine,—that other is mine, and all that is produced in it is my exclusive property. And the astonishing thing is, that this usurped privilege, far from having been fatal to the community, has been found productive of advantage to it.” Undoubtedly this arrangement has been advantageous; but why? Just because it is neither a privilege nor usurped, and M. Say indeed distinguishes, in the value of corn, the parts contributed by Property, by Capital, and by Labour. He has with the best intention been at great pains to justify this first part of the remuneration which accrues to the proprietor, and which is the recompense of no labour, either anterior or present; but he fails; for, like Scrope, he is obliged to fall back on the last and least satisfactory of all grounds of vindication, necessity. “If it be impossible,” he remarks, “for production to be effected, not only without land and without capital, but without these means of production previously becoming property, may it not be said that proprietors of land and capital exercise a productive function, since, without the employment of these means, production would not take place?—a convenient function no doubt, but which, in the present state of society, presupposes accumulation, which is the result of production or saving,” etc. The confusion here is palpable. The accumulation has been effected by the proprietor in his character of Capitalist—a character with which at present we have no concern. But what M. Say represents as convenient is the part played by the proprietor, in his proper character of proprietor, exacting a price for the gifts of God. It is this part which it is necessary to vindicate, and it has no connexion with either accumulation or saving. “If, then, property in land and in capital” (why assimilate the two?) “be the fruit of production, I am warranted in representing such property as a working and productive machine, for which its author, although sitting with his hands across, is entitled to exact a recompense.” Still the same confusion. The man who constructs a machine is proprietor of a capital, from which he legitimately derives an income, because he is paid, not for the labour of the machine, but for his own labour in constructing it. But land, or territorial property, is not the result of human production. What right, then, have we to be paid for its co-operation? The author has here mixed up two different kinds of property in the same category, in order that the same reasons which justify the one may serve for the vindication of the other. Blanqui.—“The agriculturist who tills, manures, sows, and reaps his field, furnishes labour, without which nothing would be produced. But the action of the soil in making the seed germinate, and of the sun in bringing the plant to maturity, are independent of that labour, and co-operate in the formation of the value represented by the harvest. . . Smith and other Economists pretend that the labour of It is impossible to imagine a more complete confusion than we have here, first between utility and value, and then between onerous and gratuitous utility. Joseph Garnier.—“The rent of the proprietor differs essentially from the wages of the labourer and the profits of the capitalist, inasmuch as these two kinds of remuneration are the recompense, the one of trouble or pains taken, the other of a privation submitted to, and a risk encountered, whilst Rent is received by the proprietor gratuitously, and in virtue alone of a legal convention which recognises and maintains in certain individuals the right to landed property.”—(ElÉments de l’Économie Politique, 2e edition, p. 293.) In other words, the labourer and capitalist are paid, in the name of equity, for the services they render; and the proprietor is paid, in the name of law, for services which he does not render. “The boldest innovators do not go farther than to propose the substitution of collective for individual property. It seems to us that they have reason on their side as regards human right; but they are wrong practically, inasmuch as they are unable to exhibit the advantages of a better Economical system.”...—(Ibid., pp. 377, 378.) “But at the same time, in avowing that property is a privilege, a monopoly, we must add, that it is a natural and a useful monopoly. . .. “In short, it seems to be admitted by Political Economy” [it is so, alas! and here lies the evil] “that property does not flow from divine right, demesnial right, or any other speculative right, but simply from its utility. It is only a monopoly tolerated in the interest of all,” etc. This is precisely the judgment pronounced by Scrope, and repeated in modified terms by Say. I think I have now satisfactorily shown that Political Economy, setting out with the false datum, that “natural agents possess or create value,” has arrived at this conclusion, “that property (in as far as it appropriates and is remunerated for this value, which is independent of all human service) is a privilege, a monopoly, a usurpation; but that it is a necessary monopoly, and must be maintained.” It remains for me to show that the Socialists set out with the same postulate, only they modify the conclusion in this way: “Property is a necessary monopoly; it must be maintained, but we must demand, from those who have property, compensation to those who have none, in the shape of Right to Employment.” I shall, then, dispose of the doctrine of the Communists, who, arguing from the same premises, conclude that “Property is a monopoly, and ought to be abolished.” Finally, and at the risk of repetition, I shall, if I can, expose the fallacy of the premises on which all the three conclusions are based, namely, that natural agents possess or create value. If I succeed in M. ConsidÉrant.59—“In order to discover how and under what conditions private property may Legitimately manifest and develop itself, we must get possession of the fundamental principle of the Right of Property; and here it is: “Every man POSSESSES LEGITIMATELY THE THINGS which have been CREATED by his labour, his intelligence, or, to speak more generally, BY HIS ACTIVITY. “This Principle is incontestable, and it is right to remark that it contains implicitly the acknowledgment of the Right of all to the Soil. The earth not having been created by man, it follows in fact, from the fundamental principle of Property, that the Soil, which is a common fund given over to the species, can in no shape legitimately become the absolute and exclusive property of this or that individual who has not created this value. Let us establish, then, the true Theory of Property, by basing it exclusively on the unexceptionable principle which makes the legitimacy of Property hinge upon the fact of the CREATION of the thing, or of the value possessed. To accomplish this we must direct our reasoning to the origin of industry, that is to say, to the origin and development of agriculture, manufactures, the arts, etc., in human society. “Suppose that on a solitary island, on the territory of a nation, or on the entire surface of the earth (for the extent of the field of action makes no difference in our estimate of facts), a generation of mankind devotes itself for the first time to industry—for the first time engages in agriculture, manufactures, etc. Each generation, by its labour, by its intelligence, by the exertion of its own proper activity, creates products, develops value, which did not exist on the earth in its rude and primitive state. Is it not perfectly evident that, among the first generation of labourers, Property would conform to Right, PROVIDED the value or wealth produced by the activity of all were distributed among the producers IN PROPORTION TO THE CO-OPERATION of each in the creation of the general riches? That is beyond dispute. “Now, the results of the labour of this generation may be divided into two categories, which it is important to distinguish. “The first category includes the products of the soil, which belong to this first generation in its character of usufructuary, as having been increased, refined, or manufactured by its labour, by its industry. These products, whether raw or manufactured, consist either of objects of consumption or of instruments of labour. It is clear that these products belong, in entire and legitimate property, to those who have created them by their activity. Each of them, then, has RIGHT, either to consume these products immediately, to store them up to be disposed of afterwards at pleasure, or to employ them, exchange them, give them away, or transmit them to any one he chooses, without receiving authority from anyone. On this hypothesis, this Property is evidently Legitimate, respectable, sacred. We cannot assail it without assailing Justice, Right, individual liberty,—without, in short, being guilty of Spoliation. “Second category. But the creations attributable to the industrious activity of this first generation are not all included in the preceding category. This generation has created not only the products which we have just described (objects of consumption and instruments of labour),—it has also added an additional value to the primitive value of the soil, by cultivation, by erections, by the permanent improvements which it has executed. “This additional value constitutes evidently a product, a value, due to the activity of the first generation. Now, if by any means (we are not concerned at present with the question of means),—if by any means whatever the property of this additional value is equitably distributed among the different members of society, that is to say, is distributed among them proportionally to the co-operation of each in its creation, each will possess legitimately the portion which has fallen to him. He may, then, dispose of this individual Property, legitimate as he sees it to be, exchange it, give it away, or transmit it without control, society having over these values no right or power whatsoever. “We may, therefore, easily conceive that when the second generation makes its appearance, it will find upon the land two sorts of Capital: “1st, The primitive or natural capital, which has not been created by the men of the first generation—that is, the value of the land in its rough, uncultivated state. “2d, The capital created by the first generation: including (1), the products, commodities, and instruments, which shall not have been consumed or used by the first generation; (2), the additional value which the labour of the first generation has added to the value of the rough, uncultivated land. “It is evident, then, and results clearly and necessarily from the fundamental principle of the Right of Property, which I have just explained, that each individual of the second generation has an equal right to the primitive or natural capital, whilst he has no right to the other species of capital which has been created by the labour of the first generation. Each individual of the first generation may, then, dispose of his share of this created capital in favour of whatever individual of the second generation he may please to select, children, friends, etc., and no one, not even the State itself, as we have just seen, has the slightest right (on pretence of Property) to control the disposal which, as donor or testator, he may have made of such capital. “Observe that on this hypothesis the man of the second generation is already in a better situation than the man of the first, seeing that, besides his right to the primitive capital, which is preserved to him, he has his chance of receiving a portion of the created capital, that is to say, of a value which he has not produced, and which represents anterior labour. “If, then, we suppose things to be arranged in society in such a way that, “1st, The right to the primitive capital, that is, the usufruct of the soil in its natural state, is preserved, or that an EQUIVALENT RIGHT is conferred on every individual born within the territory; “2d, That the created capital is continually distributed among men, as it is produced, in proportion to the co-operation of each in the production of that capital; “If, we say, the mechanism of the social organization shall satisfy these two conditions, PROPERTY, under such a rÉgime, would be established IN ITS ABSOLUTE LEGITIMACY, and Fact would be in unison with Right.”—(ThÉorie du droit de propriÉtÉ et du droit au travail, 3e edition, p. 17.) We see here that the socialist author distinguishes between two kinds of value, created value, which is the subject of legitimate property, and uncreated value, which he denominates the value of land in its natural state, primitive capital, natural capital, which cannot become individual property but by usurpation. Now, according to the theory which I am anxious to establish, the ideas expressed by the words uncreated, primitive, natural, exclude radically these other ideas, value, capital. This is the error in M. ConsidÉrant’s premises, by which he is landed in this melancholy conclusion: “That, under the rÉgime of Property, in all civilized nations, the common fund, over which the entire species has a full right of usufruct, has been invaded—has been confiscated—by the few, to the exclusion of the many. Why, were even a single human being excluded from his Right to the Usufruct of this common fund, that very exclusion would of itself constitute an attack upon Right by the Institution of Property, and that institution, by sanctioning such invasion of right, would be unjust and illegitimate.” M. ConsidÉrant, however, acknowledges that the earth could not be cultivated but for the institution of individual property. Here, then, is a necessary monopoly. What can we do, then, to reconcile all, and preserve the rights which the prolÉtaires, or men of no property, have to the primitive, natural, uncreated capital, and to the value of the land in its rough and uncultivated state? “Why, let Society, which has taken possession of the land, and taken away from man the power of exercising, freely and at will, his four natural rights on the surface of the soil,—let this industrious society cede to the individual, in compensation for the rights of which it has deprived him, the Right to Employment.”—[Le Droit au Travail.] Now, nothing in the world is clearer than that this theory, except the conclusion which it seeks to establish, is exactly the theory of the Economists. The man who purchases an agricultural product remunerates three things: 1st, The actual labour—nothing more legitimate; 2dly, the additional value imparted to the soil by anterior labour—still nothing more legitimate; 3dly, and lastly, the primitive, or natural, or uncreated capital,—that gratuitous gift of God, which M. ConsidÉrant denominates the value of the land in its rough and natural state; Adam Smith, the indestructible powers of the soil; Ricardo, the productive and indestructible powers of the land; Say, natural agents. This is the part which has been usurped, according to M. ConsidÉrant; this is what has been usurped, according to J. B. Say. It is this which constitutes illegitimacy and spoliation in the eyes of the Socialists; which constitutes monopoly and privilege in the eyes of the Economists. They are at one as to the necessity and the utility of this arrangement. Without it the earth would produce nothing, say the disciples of Smith; without it we should return to the savage state, re-echo the disciples of Fourier. We find that in theory, and as regards right (at least with reference to this important question), the understanding between the two schools is much more cordial than we should have imagined. They differ only as to the legislative consequences to be deduced from the fact on which they agree. “Seeing that property is tainted with illegitimacy, inasmuch as it assigns to the proprietor a part of the remuneration to which he has no right; and seeing, at the same time, that it is necessary, let us respect it, but demand indemnities. No, say the Economists, although it is a monopoly, yet seeing that it is a necessary monopoly, let us respect it, and let it alone.” And yet they urge this weak defence but feebly; for one of their latest organs, M. J. Garnier, adds, “You have reason on your side, as regards human right, but you are wrong practically, inasmuch as you have failed to point out the effects of a better system.” To which the Socialists immediately reply, “We have found it; it is the Right to Employment—try it.” In the meantime M. Proudhon steps in. You imagine, perhaps, that this redoubtable objector is about to question the premises on which the Economists and Socialists ground their agreement. Not at all. He can demolish property without that. M. Proudhon has brought forward many arguments against landed Property. The most formidable one—indeed the only formidable one—is that with which these authors have furnished him, by confounding utility with value. “Who has the right,” he asks, “to charge for the use of the soil,—for that wealth which does not proceed from man’s act? Who is entitled to the rent of land? The producer of the land, without doubt. Who made it? God. Then, proprietor, begone. “ .... But the Creator of the earth does not sell it—he gives it; and in giving it he shows no respect of persons. Why, then, among all his children, are some treated as eldest sons, and some as bastards? If equality of inheritance be our original right, why should our posthumous right be inequality of conditions?” Replying to J. B. Say, who had compared land to an instrument, he says: “I grant it that land is an instrument; but who is the workman? Is it the proprietor? Is it he who, by the efficacious virtue of the right of property, communicates to it vigour and fertility? It is precisely here that we discover in what consists the monopoly of the proprietor,—he did not make the instrument, and he charges for its use. Were the Creator to present Himself and demand the rent of land, we must account for it to Him; but the proprietor, who represents himself as invested with the same power, ought to exhibit his procuration.” That is evident. The three systems in reality make only one. Economists, Socialists, Egalitaires, all direct against landed proprietors the same reproach, that of charging for what they have no right to charge for. This wrong some call monopoly, some illegitimacy, others theft—these are but different phases of the same complaint. Now I would appeal to every intelligent reader whether this complaint is or is not well founded? Have I not demonstrated that there is but one thing which comes between the gifts of God and the hungry mouth, namely, human service? Economists say, that “Rent is what we pay to the proprietor for the use of the productive and indestructible powers of the soil.” I say, No—Rent is like what we pay to the water-carrier for the pains he has taken to construct his barrow, and the water would cost us more if he had carried it on his back. In the same way, corn, flax, wool, timber, meat, fruits, would have cost us more if the proprietor had not previously improved the instrument which furnishes them. Socialists assert that “originally the masses enjoyed their right Égalitaires allege that “the monopoly of the proprietor consists in this, that not having made the instrument, he yet charges for its use.” I answer, No—the land-instrument, so far as it is the work of God, produces utility, and that utility is gratuitous; it is beyond the power of the proprietor to charge for it. The land-instrument, so far as it is prepared by the proprietor,—so far as he has laboured it, enclosed it, drained it, improved it, and furnished it with other necessary instruments, produces value, and that value represents actual human services, and for these alone is the proprietor paid. You must either admit the legitimacy of this demand, or reject your own principle—the mutuality of services. In order to satisfy ourselves as to the true elements of the value of land, let us attend to the way in which landed property is formed—not by conquest and violence, but according to the laws of labour and exchange. Let us see what takes place in the United States. Brother Jonathan, a laborious water-carrier of New York, set out for the Far-west, carrying in his purse a thousand dollars, the fruit of his labour and frugality. He journeyed across many fertile provinces, where the soil, the sun, and the rain worked wonders, but which nevertheless were entirely destitute of value in the economical and practical sense of the word. Being a little of a philosopher, he said to himself—“Let Adam Smith and Ricardo say what they will, value must be something else than the natural and indestructible productive power of the soil.” At length, having reached the State of Arkansas, he found a beautiful property of about 100 acres, which the government had advertised for sale at the price of a dollar an acre. A dollar an acre! he said—that is very little, almost nothing. I shall purchase this land, clear it, and sell the produce, and the drawer of water shall become a lord of the soil! Brother Jonathan, being a merciless logician, liked to have a reason for everything. He said to himself, But why is this land worth even a dollar an acre? No one has yet put a spade in it, or has bestowed on it the least labour. Can Smith and Ricardo, and the whole string of theorists down to Proudhon, be right after all? Can land have a value independent of all labour, all service, But he was not long in perceiving that this value, like all other values, is of human and social creation. The American government demanded a dollar for the concession of each acre; but, on the other hand, it undertook to guarantee to a certain extent the security of the acquirer; it had formed in a rough way a road to the neighbourhood, facilitated the transmission of letters and newspapers, etc. Service for service, said Jonathan;—the government makes me pay a dollar, but it gives me an adequate equivalent. With deference to Ricardo, I can now account naturally for the value of this land, which value would be still greater if the road were extended and improved, the post more frequent and regular, and the protection more efficacious and secure. While Jonathan argued, he worked; for we must do him the justice to say that he always made thinking and acting keep pace. He expended the remainder of his dollars in buildings, enclosures, clearances, trenching, draining, improving, etc.; and after having dug, laboured, sowed, harrowed, reaped, at length came the time to dispose of his crop. “Now I shall see,” said Jonathan, still occupied with the problem of value, “if in becoming a landed proprietor I have transformed myself into a monopolist, a privileged aristocrat, a plunderer of my neighbour, an engrosser of the bounties of divine Providence.” He carried his grain to market, and began to talk with a Yankee:—Friend, said he, how much will you give me for this Indian corn? The current price, replied the other. The current price! but will that yield me anything beyond the interest of my capital and the wages of my labour? I am a merchant, said the Yankee, and I know that I must content myself with the recompense of my present and former labour. And I was content with it when I was a mere drawer of water, replied the other, but now I am a landed proprietor. The English and French Economists have assured me that in that character I The gifts of God belong to all, said the merchant. I avail myself of the productive power of the wind for propelling my ships, but I make no one pay for it. Still, as far as I am concerned, I expect that you will pay me something for these powers, in order that Messieurs Senior, ConsidÉrant, and Proudhon, should not call me a monopolist and usurper for nothing. If I am to have the disgrace, I may at least have the profit, of a monopolist. In that case, friend, I must bid you good morning. To obtain the maize I am in quest of, I must apply to other proprietors, and if I find them of your mind, I shall cultivate it for myself. Jonathan then understood the truth, that, under the empire of freedom, a man cannot be a monopolist at pleasure. As long as there are lands in the Union to clear, said he, I can never be more than the simple setter in motion of these famous productive and indestructible forces. I shall be paid for my trouble, that is all, just as when I was a drawer of water I was paid for my own labour, and not for that of nature. I see now very clearly that the true usufructuary of the gifts of God is not the man who raises the corn, but the man who consumes it. Some years afterwards, another enterprise having engaged the attention of Jonathan, he set about finding a tenant for his land. The dialogue which took place between the two contracting parties was curious, and would throw much light on the subject under consideration were I to give it entire. Here is part of it: Proprietor. What! you would give me no greater rent than the interest, at the current rate, of the capital I have actually laid out? Farmer. Not a cent more. Proprietor. Why so, pray? Farmer. Just for this reason, that, with the outlay of an equal capital, I can put as much land in as good condition as yours. Proprietor. That seems conclusive. But consider that when you become my tenant, it is not only my capital which will work for you, but also the productive and indestructible powers of the soil. You will have enlisted in your service the marvellous influences of the sun and the moon, of affinity and electricity. Am I to give you all these things for nothing? Farmer. Why not, since they cost you nothing, and since you derive nothing from them, any more than I do? Proprietor. Derive nothing from them? I derive everything from them. Zounds! without these admirable phenomena, all my industry could not raise a blade of grass. Farmer. Undoubtedly. But remember the Yankee you met at market. He would not give you a farthing for all this co-operation of nature any more than, when you were a water-carrier, the housewives of New York would give you a farthing for the admirable elaboration by means of which nature supplied the spring. Proprietor. Ricardo and Proudhon, however,.... Farmer. A fig for Ricardo. We must either treat on the basis which I have laid down, or I shall proceed to clear land alongside yours, where the sun and the moon will work for me gratis. It was always the same argument, and Jonathan began to see that God had wisely arranged so as to make it difficult for man to intercept His gifts. Disgusted with the trade of proprietor, Jonathan resolved to employ his energies in some other department, and he determined to put up his land to sale. It is needless to say that no one would give him more for it than it cost himself. In vain he cited Ricardo, and represented the inherent value of the indestructible powers of the soil—the answer always was, “There are other lands close by;” and these few words put an extinguisher on his exactions and on his illusions. There is, moreover, in this transaction a fact of great Economic importance, and to which little attention has been paid. It is easy to understand that if a manufacturer desires, after ten or fifteen years, to sell his apparatus and materials, even in their new state, he will probably be forced to submit to a loss. The reason is obvious. Ten or fifteen years can scarcely elapse without considerable improvements in machinery taking place. This is the reason why the man who sends to market machinery fifteen years old cannot expect a return exactly equal to the labour he has expended; for with an equal expenditure of labour the purchaser could, owing to the progress subsequently made, procure himself machinery of improved construction—which, we may remark in passing, proves more and more clearly that value is not in proportion to labour, but to services. Hence we may conclude that machinery and instruments of labour have a tendency to lose part of their value in consequence of the mere lapse of time, without taking into account their deterioration by use—and we may lay down this formula, that “one of the effects of progress is to diminish the value of all existing instruments.” It is clear, in fact, that the more rapid that progress is, the greater difficulty will the former instruments have in sustaining the rivalry of new and improved ones. I shall not stop here to remark the harmony exhibited by the results of this law. What I desire you to observe at present is, that landed property no more escapes from the operation of this law than any other kind of property. Brother Jonathan experiences this. He holds this language to the purchaser—“What I have expended on this property in permanent improvements represents a thousand days’ labour. I expect that you will, in the first place, reimburse me for these thousand days’ work, and then add something for the value which is inherent in the soil and independent of all human exertion.” The purchaser replies: “In the first place, I shall give you nothing for the value inherent in the soil, which is simply utility, which the adjoining property possesses as well as yours. Such native superhuman utility I can obtain gratis, which proves that it possesses no value. “In the second place, since your books show that you have expended a thousand days’ work in bringing your land to its present state, I shall give you only 800 days’ labour; and my reason for it is, that with 800 days’ labour I can now-a-days accomplish the same improvements on the adjoining land as you have executed with 1000 days’ labour on yours. Pray consider that in the course of fifteen years the art of draining, clearing, building, sinking wells, designing farm-offices, transporting materials, has made great progress. Less labour is now required to effect each given result, and I cannot consent to give you ten for what I can get for eight, more especially as the price of grain has fallen in proportion to this progress, which is a profit neither to you nor to me, but to mankind at large.” Thus Jonathan was left no alternative but to sell his land at a loss, or to keep it. Undoubtedly the value of land is not affected by one circumstance exclusively. Other circumstances—such as the construction of a canal, or the erection of a town—may act in an opposite direction, and raise its value, but the improvements of which I have spoken, which are general and inevitable, always necessarily tend to depress it. The conclusion to be deduced from all I have said is, that as long as there exists in a country abundance of land to be cleared and brought under cultivation, the proprietor, whether he cultivates, or lets, or sells it, enjoys no privilege, no monopoly, no exceptional Would you like to know how a proprietor even in the United States could establish for himself a monopoly? I shall try to explain it. Suppose Jonathan to assemble all the proprietors of the United States, and hold this language to them: “I desired to sell my crops, and I found no one who would give me a high enough price for them. I wished then to let my land, and encountered the same difficulty. I resolved to sell it, but still experienced the same disappointment. My exactions have always been met by their telling me, that there is more land in the neighbourhood; so that, horrible to say, my services are estimated by the community like the services of other people, at what they are worth, in spite of the flattering promises of theorists. They will give me nothing, absolutely nothing, for those productive and indestructible powers of the soil, for those natural agents, for the solar and lunar rays, for the rain, the wind, the dew, the frost, which I was led to believe were mine, but of which I turn out to be only the nominal proprietor. Is it not an iniquitous thing that I am remunerated only for my services, and at a rate, too, reduced by competition? You are all suffering under the same oppression, you are all alike the victims of anarchical competition. It would be no longer so, you may easily perceive, if we organized landed property, if we laid our heads together to prevent anyone henceforward from clearing a yard of American soil. In that case, population pressing, by its increase, on a nearly fixed amount of subsistence, we should be able to make our own prices and attain immense wealth, which would be a great boon for all other classes; for being rich, we should provide them with work.” If, in consequence of this discourse, the combined proprietors Take another hypothesis, which indeed represents the actual state of things among the civilized nations of Europe—and suppose all the land to have passed into the domain of private property. We are to inquire whether in that case the mass of consumers, or the community, would continue to be the gratuitous usufructuary of the productive powers of the soil, and of natural agents; whether the proprietors of land would be owners of anything else than of its value, that is to say, of their services fairly estimated according to the laws of competition; and whether, when they are recompensed for those services, they are not forced like everyone else to give the gifts of God into the bargain. Suppose, then, the entire territory of Arkansas alienated by the government, parcelled into private domains, and subjected to culture. When Jonathan brings his grain or his land to market, can he not now take advantage of the productive power of the soil, and make it an element of value? He could no longer be met, as in the preceding case, with the overwhelming answer. “There is more uncultivated land adjacent to yours.” This new state of things presupposes an increase of population, which may be divided into two classes: 1st, That which furnishes to the community agricultural services; 2dly, That which furnishes manufacturing, intellectual, or other services. Now this appears to me quite evident. Labourers (other than owners of land) who wished to procure supplies of grain, being perfectly free to apply either to Jonathan or to his neighbours, or to the proprietors of adjoining states, being in circumstances even to proceed to clear lands beyond the territory of Arkansas, it would be absolutely impossible for Jonathan to impose an unjust law upon them. The very fact that lands which have no value exist elsewhere would oppose to monopoly an invincible obstacle, and we should be landed again in the preceding hypothesis. Agricultural services are subject to the law of Universal Competition, It may be said, no doubt, that in point of fact the value of the soil is constantly increasing; and this is true. In proportion as population becomes more dense and the people more wealthy, and the means of communication more easy, the landed proprietor derives more advantage from his services. Is this law peculiar to him? Does the same thing not hold of all other producers? With equal labour, does not a physician, a lawyer, a singer, a painter, a day labourer, procure a greater amount of enjoyments in the nineteenth than he could in the fourth century? in Paris than in Brittany? in France than in Morocco? But is this increased enjoyment obtained at the expense of any other body? That is the point. For the rest, we shall investigate still farther this law of value (using the word metonymically) of the soil, in a subsequent part of the work, when we come to consider the theory of Ricardo. At present it is sufficient to show that Jonathan, in the case we have put, can exercise no oppression over the industrial classes, provided the exchange of services is free, and that labour can, without any legal impediment, be distributed, either in Arkansas or elsewhere, among different kinds of production. This liberty renders it impossible for the proprietors to intercept, for their own profit, the gratuitous benefits of nature. It would no longer be the same thing if Jonathan and his brethren, availing themselves of their legislative powers, were to proscribe or shackle the liberty of trade,—were they to decree, for example, that not a grain of foreign corn should be allowed to enter the territory of Arkansas. In that case the value of services exchanged between proprietors and non-proprietors would no longer be regulated by justice. The one party could no longer control the This (to give the thing its right name) is extortion. Brutal or legal, the character of the transaction is the same. Brutal, as in the case of the pistol, it violates property; legal, as in the case of the prohibition, it still violates property, and repudiates, moreover, the very principle upon which property is founded. The exclusive subject of property, as we have seen, is value, and Value is the appreciation of two services freely and voluntarily exchanged. It is impossible, then, to conceive anything more directly antagonistic to the very principle of property, than that which, in the name of right, destroys the equivalence of services. It may not be out of place to add, that laws of this description are iniquitous and injurious, whatever may be the opinions entertained by those who impose them, or by those who are oppressed by their operation. In certain countries we find the working-classes standing up for these restrictions, because they enrich the proprietors. They do not perceive that it is at their expense, and I know from experience that it is not always safe to tell them so. Strange! that people should listen willingly to sectaries who preach Communism, which is slavery; for when a man is no longer master of his own services, he is a slave;—and that they should look askance at those who are always and everywhere the defenders of Liberty, which is the Community of the gifts of God. We now come to the third hypothesis, which assumes that all the land capable of cultivation throughout the world has passed into the domain of individual appropriation. We have still to do with two classes—those who possess land—and those who do not. Will the first not oppress the second? and will the latter not be always obliged to give more labour in exchange for the same amount of subsistence? I notice this objection merely for argument’s sake, for hundreds of years must elapse before this hypothesis can become a reality. Everything forewarns us, however, that the time must at last come when the exactions of proprietors can no longer be met by the words, There are other lands to clear. I pray the reader to remark, that this hypothesis implies another—it implies that at the same epoch population will have reached This is a new and important element in the question. It is very much as if one should put the question, What will happen when there is no longer enough of oxygen in the atmosphere to supply the lungs of a redundant population? Whatever view we take of the principle of population, it is at least certain that population is capable of increase, nay, that it has a tendency to increase, since in point of fact it does increase. All the economic arrangements of society appear to have been organized with the previous knowledge of this tendency, and are in perfect harmony with it. The landed proprietor always endeavours to get paid for the natural agents which he has appropriated, but he is as constantly foiled in this foolish and unjust pretension by the abundance of analogous natural agents which have not been appropriated. The liberality of nature, which is comparatively indefinite, constitutes him a simple custodier. But now you drive me into a corner, by supposing a period at which this liberality reaches its limit. Men have then no longer anything to expect from that quarter. The consequence is inevitable, that the tendency of mankind to increase will be paralyzed, that the progress of population will be arrested. No economic rÉgime can obviate this necessity. According to the hypothesis we have laid down, every increase of population would be repressed by mortality. No philanthropy, no optimism, can make us believe that the increase of human beings can continue its progression when the progressive increase of subsistence has conclusively terminated. Here, then, we have a new order of things and the harmony of the social laws might be called in question, had they not provided for a state of matters the existence of which is possible, although very different from that which now obtains. The difficulty we have to deal with, then, comes to this: When a ship in mid-ocean cannot reach land in less than a month, and has only a fortnight’s provisions on board, what is to be done? Clearly this, reduce the allowance of each sailor. This is not cruelty—it is prudence and justice. In the same way, when population shall have reached the extreme limit that all the land in the world can maintain, a law which, by gentle and infallible means prevents the further multiplication of mankind, cannot be considered either harsh or unjust. Now, it is landed property still which affords us solution of the difficulty. The institution of property, by applying the stimulant of self-interest, causes the land to produce the greatest possible After all, it appears to me that Political Economy has discharged her duty when she has proved that the great and just law of the mutuality of services operates harmoniously, so long as human progress is not conclusively arrested. Is it not consoling to think that up to that point, and under the empire of freedom, it is not in the power of one class to oppress another? Is economic Science bound to solve this further problem: Given the tendency of mankind to multiply, what will take place when there is no longer room in the world for new inhabitants? Does God hold in reserve for that epoch some creative cataclasm, some marvellous manifestation of His almighty power? Or, as Christians, do we believe in the doctrine of the world’s destruction? These evidently are not economical problems, and there is no science which does not encounter similar difficulties. Natural philosophers know well, that all bodies which move on the surface of the earth have a tendency to descend, not to ascend. After all, a day must come when the mountains shall have filled up the valleys, when the embouchure of our rivers will be on the same level as their source, when the waters can no longer flow, etc., etc. What will happen then? Is Natural Science to cease to observe and to admire the harmony of the actual world because she cannot divine by what other harmony God will provide for a state of things far distant, no doubt, but inevitable? It seems to me that at this point the Economist, like the natural philosopher, should substitute for an exercise of curiosity an exercise of faith. He who has so marvellously arranged the medium in which we now live, knows best how to prepare another medium suitable to other circumstances. We judge of the productiveness of the soil and of human skill by the facts of which we are witnesses. Is this a rational mode of proceeding? Then, adopting it, we may say, Since it has required six thousand years to bring a tenth part of the earth to the sorry state of cultivation in which we find it, how many hundreds of ages must elapse before its entire surface shall be converted into a garden? Yet in this appreciation, comforting as it is, we suppose merely the more general diffusion of our present knowledge, or rather our present ignorance, of agriculture. But is this, I repeat, an Let us recapitulate the ideas contained in this chapter. These two phenomena, Utility and Value—the co-operation of nature and the co-operation of man, consequently Community and Property—are combined in the work of agriculture, as in every other department of industry. In the production of corn which appeases our hunger, we remark something analogous to what takes place in the formation of water which quenches our thirst. The ocean, which is the theme of the poet’s inspiration, offers to the Economist also a fine subject of meditation. It is this vast reservoir which gives drink to all human creatures. And yet how can that be, when many of them are situated at a great distance from its shores, and when its water is besides undrinkable? It is here that we have to admire the marvellous industry of nature. We mark how the sun warms the heaving mass, and subjects it to a slow evaporation. The water takes the form of gas, and, disengaged from the salt, which rendered it unfit for use, it rises into the high regions of the atmosphere. Gales of wind, increasing in all directions, drift it towards inhabited continents. There it encounters cold, which condenses it, and attaches it in a solid form to the sides of mountains. By-and-by the gentle heat of spring melts it. Carried along by its weight, All men, however, have not a spring of pure water at their door. In order to quench their thirst they must take pains, make efforts, exert foresight and skill. It is this supplementary human labour which gives rise to arrangements, transactions, estimates. It is here, then, that we discover the origin and foundation of value. Man is originally ignorant. Knowledge is acquired. At the beginning, then, he is forced to carry water, to accomplish the supplementary labour which nature has left him to execute with the maximum of trouble. It is at this stage that water has the greatest value in exchange. By degrees the water-carrier invents a barrow and wheels, trains horses, constructs pipes, discovers the law of the siphon, etc.; in short, he transfers part of his labour to the gratuitous forces of nature; and, in proportion as he does so, the value of water, but not its utility, is diminished. There is here, however, a circumstance which it is necessary thoroughly to comprehend, if we would not see discordance where there is in reality only harmony. It is this, that the purchaser of water obtains it on easier terms, that is to say, gives a less amount of labour in exchange for a given quantity of it, each time that a step of progress of this kind is gained, although in such circumstances he has to give a remuneration for the instrument by means of which nature is constrained to act. Formerly he paid for the labour of carrying the water; now he pays not only for that, but for the labour expended in constructing the barrow, the wheel, and the pipe—and yet, everything included, he pays less; and this shows us how false and futile the reasoning is which would persuade us that that part of the remuneration which is applicable to capital is a burden on the consumer. Will these reasoners never understand that, for each result obtained, capital supersedes more labour than it exacts? All that I have said is equally applicable to the production of corn. In that case also, anterior to all human labour, there has To direct these natural forces, and remove the obstacles which impede their action, man takes possession of an instrument, which is the soil, and he does so without injury to anyone; for this instrument had previously no value. This is not a matter of argument, but a matter of fact. Show me, in any part of the world you choose, land which has not been subjected directly or indirectly to human action, and I will show you land destitute of value.61 In the meantime, the agriculturist, in order to effect, in conjunction with nature, the production of corn, executes two kinds of labour which are quite distinct. The one kind is applicable directly and immediately to the crop of the year—is applicable only to that, and must be paid for by that—such as sowing, weeding, reaping, etc. The other, as building, clearing, draining, enclosing, is applicable to an indefinite series of crops, and must be charged to and spread over a course of years, and calculated according to the tables of interest and annuities. The crops constitute the remuneration of the agriculturist if he consumes them himself. If he exchanges them, it is for services of another kind, and the appreciation of the services so exchanged constitutes their value. Now it is easy to see that this class of permanent works executed by the agriculturist upon the land is a value which has not yet received its entire recompense, but which cannot fail to receive it. It cannot be supposed that he is to throw up his land and allow another to step into his shoes without compensation. The value has been incorporated and mixed up with the soil, and this is the reason why we can with propriety employ a metonymy and say the land has value. It has value, in fact, because it can be no longer acquired without giving in exchange the equivalent for this labour. But what I contend for is, that this land, on which its natural productive power had not originally conferred any value, Nor is this all. The capital which has been advanced, and the interest of which is spread over the crop of successive years, is so far from increasing the price of the produce, and forming a burden on the consumers, that the latter acquire agricultural products cheaper in proportion as this capital is augmented, that is to say, in proportion as the value of the soil is increased. I have no doubt that this assertion will be thought paradoxical and tainted with exaggerated optimism, so much have people been accustomed to regard the value of land as a calamity, if not a piece of injustice. For my own part, I affirm, that it is not enough to say that the value of the soil has been created at no one’s expense; it is not enough to say that it injures no one; we should rather say that it benefits everybody. It is not only legitimate, but advantageous, even to those who possess no property. We have here, in fact, the phenomenon of our previous illustration reproduced. We remarked that from the moment the water-carrier invented the barrow and the wheel, the purchaser of the water had to pay for two kinds of labour: 1st, The labour employed in making the barrow and the wheel, or rather the interest of the capital, and an annual contribution to a sinking fund to replace that capital when worn out; 2d, The direct labour which the water-carrier must still perform. But it is equally true that these two kinds of labour united do not equal in amount the labour which had to be undergone before the invention. Why? because a portion of the work has now been handed over to the gratuitous forces of nature. It is, indeed, in consequence of this diminution of human labour that the invention has been called forth and adopted. All this takes place in exactly the same way in the case of land and the production of corn. As often as an agriculturist expends capital in permanent ameliorations, it is certain that the successive crops are burdened with the interest of that capital. But it is Here is an example of it. In order to obtain a good crop, it is necessary that the field should be freed from superfluous moisture. Suppose this species of labour to be still included in the first category. Suppose that the cultivator goes every morning with a jar to carry off the stagnant water where it is productive of injury. It is clear that at the year’s end the land would have acquired no additional value, but the price of the grain would be enormously enhanced. It would be the same in the case of all those who followed the same process while the art of draining was in this primitive state. If the proprietor were to make a drain, that moment the land would acquire value, for this labour pertains to the second category—that which is incorporated with the land—and must be reimbursed by the products of consecutive years; and no one could expect to acquire the land without recompensing this work. Is it not true, however, that it would tend to lower the value of the crop? Is it not true that although during the first year it exacted an extraordinary exertion, it saves in the long-run more labour than it has occasioned? Is it not true that the draining thenceforth will be executed by the gratuitous law of hydrostatics more economically than it could be by muscular force? Is it not true that the purchasers of corn will benefit by this operation? Is it not true that they should esteem themselves fortunate in this new value acquired by the soil? And, having reference to more general considerations, is it not true, in fine, that the value of the soil attests a progress realized, not for the advantage of the proprietor only, but for that of society at large? How absurd, then, and suicidal in society to exclaim: The additional price charged for corn, to meet the interest of the capital expended on this drain, and ultimately to replace that capital, or its equivalent, as represented in the value of the land, is a privilege, a monopoly, a theft! At this rate, to cease to be a monopolist and a thief, the proprietor should have only to fill up his drain and betake himself to his jar. Would the man who has no property, and lives by wages, be any gainer by that? Review all the permanent ameliorations of which the sum total makes up the value of land, and you will find that to each of them Let us not be insensible, then, to those economic harmonies which unfold themselves to our view more and more as we analyze the ideas of exchange, of value, of capital, of interest, of property, of community.—Will it indeed be given me to describe the entire circle, and complete the demonstration?—But we have already, perhaps, advanced sufficiently far to be convinced that the social world, not less than the material world, bears the impress of a Divine hand, from which flows wisdom and goodness, and towards which we should raise our eyes in gratitude and admiration. I cannot forbear reverting here to the view of this subject taken by M. ConsidÉrant. Setting out with the proposition, that the soil has a proper value, independent of all human labour, that it constitutes primitive and uncreated capital, he concludes, in perfect consistency with his own views, that appropriation is usurpation. This supposed iniquity leads him to indulge in violent tirades against the institutions of modern society. On the other hand, he allows that permanent ameliorations confer an additional value on this primitive capital, an accessory so mixed up with the principal that we cannot separate them. What are we to do, then? for we have here a total value composed of two elements, of which one, the fruit of labour, is legitimate property; and the other, the gift of God, appropriated by man, is an iniquitous usurpation. This is no trifling difficulty. M. ConsidÉrant resolves it by reference to the Right to Employment [Droit au travail]. “The development of Mankind evidently demands that the Soil shall not be left in its wild and uncultivated state. The destiny of the human race is opposed to property in land retaining its rude and primitive form. “In the midst of forests and savannas, the savage enjoys four natural rights, “In all civilized societies, the working-classes, the ProlÉtaires, who inherit nothing and possess nothing, are simply despoiled of these rights. We cannot say that the primitive Right has changed its form, for it no longer exists. The form and the substance have alike disappeared. “Now in what Form can such Rights be reconciled with the conditions of an industrial Society? The answer is plain: “In the savage state, in order to avail himself of his Right, man is obliged to act. The labour of Fishing, of Hunting, of Gathering, of Pasturing are the conditions of the exercise of his Right. The primitive Right, then, is a Right to engage in these employments. “Very well, let an industrial Society, which has appropriated the land, and taken away from man the power of exercising freely and at will his four natural Rights, let this society cede to the individual, in compensation for those Rights, of which it had despoiled him, the Right to Employment. On this principle, rightly understood and applied, the individual has no longer any reason to complain. “The condition sine qu non, then, of the Legitimacy of Property is, that Society should concede to the ProlÉtaire—the man who has no property—the Right to Employment; and, in exchange for a given exertion of activity, assure him of means of subsistence, at least as adequate as such exercise could have procured him in the primitive state.” I cannot, without being guilty of tiresome repetition, discuss this question with M. ConsidÉrant in all its bearings. If I demonstrate, that what he terms uncreated capital is no capital at all; that what he terms the additional value of the soil, is not an additional value, but the total value; he must acknowledge that his argument has fallen to pieces, and, with it, all his complaints of the way in which mankind have judged it proper to live since the days of Adam. But this controversy would oblige me to repeat all that I have already said upon the essentially and indelibly gratuitous character of natural agents. I shall only remark, that if M. ConsidÉrant speaks in behalf of the non-proprietary class, he is so very accommodating that they may think themselves betrayed. What! proprietors have usurped the soil, and all the miracles of vegetation which it displays! they have usurped the sun, the rain, the dew, oxygen, hydrogen, and azote, so far at least as these co-operate in the production of agricultural products—and you ask them to assure to the man who has no property, as a compensation, at least as much of the means of subsistence, in exchange for a given exertion of activity, as that exertion could have procured him in the primitive and savage state! But do you not see that landed property has not waited for your injunctions in order to be a million times more generous? for to what is your demand limited? In the primitive state, your four rights of fishing, hunting, gathering the fruits, and pasturing, maintain in existence, or rather in a state of vegetation, amid all the horrors of destitution, nearly one man to the square league of territory. The usurpation of the I find to my great regret that I have not yet done with landed property and its value. I have still to state, and to refute, in as few words as possible, an objection which is specious and even formidable. It is said, “Your theory is contradicted by facts. Undoubtedly, as long as there is in a country abundance of uncultivated land, the existence of such land will of itself hinder the cultivated land from acquiring an undue value. It is also beyond doubt, that even when all the land has passed into the appropriated domain, if neighbouring nations have extensive tracts ready for the plough, freedom of trade is sufficient to restrain the value of landed property within just limits. In these two cases it would seem that the Price of land can only represent the capital advanced, and the Rent of land the interest of that capital. Whence we must conclude, as you do, that the proper action of the soil and the intervention of natural agents, going for nothing, and not influencing the value of the crops, remain gratuitous, and therefore common. All this is specious. We may have difficulty in discovering the error, and yet this reasoning is erroneous. In order to be convinced of it, it Let us inquire, then, what is the true foundation of the value of land. I pray the reader not to forget that this question is of grave importance at the present moment. Hitherto it has been neglected or glossed over by Economists, as a question of mere curiosity. The legitimacy of individual appropriation was not formerly contested, but this is no longer the case. Theories which have obtained but too much success have created doubts in the minds of our best thinkers on the institution of property. And upon what do the authors of these theories found their complaints? Why, exactly upon the assertion contained in the objection which I have just explained—upon the fact, unfortunately admitted by all schools, that the soil, by reason of its fertility, possesses an inherent value communicated to it by nature and not by human means. Now value is not transferred gratuitously. The very word excludes the idea of gratuitousness. We say to the proprietor, then—you demand from me a value which is the fruit of my labour, and you offer me in exchange a value which is not the fruit of your labour, or of any labour, but of the liberality of nature. Be assured that this would be a fearful complaint were it well founded. It did not originate with Messieurs ConsidÉrant and Proudhon. We find it in the works of Smith, of Ricardo, of Senior, of all the Economists without exception, not as a theory It is not, then, to indulge an unhappy love for subtilties that I enter on this delicate subject. I should have wished to save both the reader and myself the ennui which even now I feel hovering over the conclusion of this chapter. The answer to the objection now under consideration is to be found in the theory of Value, explained in the fifth chapter of this work. I there said that value does not essentially imply labour; still less is it necessarily proportionate to labour. I have shown that the foundation of value is not so much the pains taken by the person who transfers it as the pains saved to the person who receives it; and it is for that reason that I have made it to reside in something which embraces these two elements—in service. I have said that a person may render a great service with very little effort, or that with a great effort one may render a very trifling service. The sole result is, that labour does not obtain necessarily a remuneration which is always in proportion to its intensity, in the case either of man in an isolated condition, or of man in the social state. Value is determined by a bargain between two contracting parties. In making that bargain, each has his own views. You offer to sell me corn. What matters it to me the time and pains it may have cost you to produce it? What I am concerned about is the time and pains it would have cost me to procure it from another quarter. The knowledge you have of my situation may render you more or less exacting; the knowledge I have of yours may render me more or less anxious to make the purchase. There is no necessary measure, then, of the recompense which you are to derive from your labour. That depends upon the circumstances, and the value which these circumstances confer upon the two services which we are desirous to exchange. By-and-by we shall call attention to an external force called Competition, whose mission is to regulate values, and render them more and more proportional to efforts. Still this proportion is not of the essence of value, seeing that the proportion is established under the pressure of a contingent fact. Keeping this in view, I maintain that the value of land arises, fluctuates, and is determined, like that of gold, iron, water, the Let us revert again to that industry, the most simple of all, and the best fitted to show us the delicate point which separates the onerous labour of man from the gratuitous co-operation of nature. I allude to the humble industry of the water-carrier. A man procures and brings home a barrel of water. Does he become possessed of a value necessarily proportionate to his labour? In that case, the value would be independent of the service the water may render. Nay more, it would be fixed; for the labour, once over, is no longer susceptible of increase or diminution. Well, the day after he procures and brings home this barrel of water, it may lose its value, if, for example, it has rained during the night. In that case every one is provided—the water can render no service, and is no longer wanted. In economic language, it has ceased to be in demand. On the other hand, it may acquire considerable value, if extraordinary wants, unforeseen and pressing, come to manifest themselves. What is the consequence? that man, working for the future, is not exactly aware beforehand what value the future will attach to his labour. Value incorporated in a material object will be higher or lower, according as it renders more or less service, or, to express it more clearly, human labour, which is the source of value, receives according to circumstances a higher or lower remuneration. Such eventualities are an exercise for foresight, and foresight also has a right to remuneration. But what connexion is there, I would ask, between these fluctuations of value, between these variations in the recompense of labour, and that marvellous natural industry, those admirable physical laws, which without our participation have brought the water of the ocean to the spring? Because the value of this barrel of water varies according to circumstances, are we to conclude that nature charges sometimes more, sometimes less, sometimes nothing at all, for evaporation, for carrying the clouds from the ocean to the mountains, for freezing, melting, and the whole of that admirable industry which supplies the spring? It is exactly the same thing in the case of agricultural products. The value of the soil, or rather of the capital applied to the soil, is made up not of one element but of two. It depends not only on the labour which has been employed, but also on the ability which society possesses to remunerate that labour—on Demand as well as on Supply. Take the case of a field. Not a year passes, perhaps, in which there is not some labour bestowed upon it, the effects of which are permanent, and of course an increase of value is the result. Roads of access, besides, are improved and made more direct, the security of person and property becomes more complete, markets are extended, population increases in number and in wealth—different systems of culture are introduced, and a new career is opened to intelligence and skill; the effect of this change of medium, of this general prosperity, being to confer additional value on both the present and the anterior labour, and consequently on the field. There is here no injustice, no exception in favour of landed property. No species of labour, from that of the banker to that of the day-labourer, fails to exhibit the same phenomenon. No one fails to see his remuneration improved by the improvement of the society in which his work is carried on. This action and reaction of the prosperity of each on the prosperity of all, and vice versa, is the very law of value. So false is the conclusion which imputes to the soil and its productive powers an imaginary value, that intellectual labour, professions and trades which have no connexion with matter or the co-operation of physical laws, enjoy the same advantage, which in fact is not exceptional but universal. The lawyer, the physician, the professor, the artist, the poet, receive a higher remuneration for an equal amount of labour, in proportion as the town or country to which they belong increases in wealth and prosperity, in proportion as the taste or demand for their services becomes more generally diffused, in proportion as the public is more able and more willing to remunerate them. The acquisition of clients and customers is regulated by this principle. It is still more apparent in the case of the Basque Giant and Tom Thumb, who lived by the simple exhibition of their exceptional stature, and reap a much better harvest, from the curiosity of the numerous and wealthy crowds of our large towns, than from that of a few poor and straggling villagers. In this case, demand not only enhances value, it creates it. Why, then, should we think it exceptional or unjust that demand should also exert an influence on the value of land and of agricultural products? Is it alleged that land may thus attain an exaggerated value? They who say so have never reflected on the immense amount of labour which arable land has absorbed. I dare affirm, that there is not a field in this country which is worth what it has cost, which could be exchanged for as much labour as has been expended in bringing it to its present state of productiveness. If this observation is well founded, it is conclusive. It frees landed property from the slightest taint of injustice. For this reason, I shall return to the subject when I come to examine Ricardo’s theory of Rent, and I shall show that we must apply to agricultural capital the law which I have stated in these terms: In proportion as capital increases, products are divided between capitalists or proprietors and labourers, in such a way that the relative share of the former goes on continually diminishing, although their absolute share is increased, whilst the share of the latter is increased both absolutely and relatively. The illusion which has induced men to believe that the productive powers of the soil have an independent value, because they possess Utility, has led to many errors and catastrophes. It has driven them frequently to the premature establishment of colonies, the history of which is nothing else than a lamentable martyrology. They have reasoned in this way: In our own country we can obtain value only by labour, and when we have done our work, we have obtained a value which is only proportionate to our labour. If we emigrate to Guiana, to the banks of the Mississippi, to Australia, to Africa, we shall obtain possession of vast territories, uncultivated but fertile; and our reward will be, that we shall become possessed not of the value we have created, but also of the inherent and independent value of the land we may reclaim. They set out, and a cruel experience soon confirms the truth of the theory which I am now explaining. They labour, they clear, they exhaust themselves; they are exposed to privations, to sufferings, to diseases; and then if they wish to dispose of the land which they have rendered fit for production, they cannot obtain for it what it has cost them, and they are forced to acknowledge that value is of human creation. I defy you to give me an instance of the establishment of a colony which has not at the beginning been attended with disaster. “Upwards of a thousand labourers were sent out to the Swan River Colony; but the extreme cheapness of land (eighteenpence, or less than two francs, an acre) and the extravagant rate of wages, afforded them such facilities and inducements to become landowners, that capitalists could no longer get any one to cultivate their lands. A capital of £200,000 (five millions of francs) was lost in consequence, and the colony became a scene of desolation. The labourers having left their employers from the delusive desire to become landowners, agricultural implements were allowed to rust—seeds rotted—and sheep, cattle, and horses perished for want of attention. A frightful famine The association, attributing this disaster to the cheapness of land, raised its price to 12s. an acre. But, adds Carey, from whom I borrow this quotation, the real cause was, that the labourers, being persuaded that land possesses an inherent value, apart from the labour bestowed on it, were anxious to exercise “the power of appropriation,” to which the power to demand Rent is attributed. What follows supplies us with an argument still more conclusive: “In 1836, the landed estates in the colony of Swan River were to be purchased from the original settlers at one shilling an acre.”—New Monthly Magazine. Thus the land which was sold by the company at 12s.—upon which the settlers had bestowed much labour and money—was disposed of by them at one shilling! What then became of the value of the natural and indestructible productive powers of the soil?62 I feel that the vast and important subject of the Value of Land has not been exhausted in this chapter, written by snatches and amid many distractions. I shall return to it hereafter; but in the meantime I cannot resist submitting one observation to my readers, and more especially to Economists. The illustrious savants who have done so much to advance the science, whose lives and writings breathe benevolence and philanthropy, and who have disclosed to us, at least in a certain aspect, and within the limits of their researches, the true solution of the social problem—the Quesnays, the Turgots, the Smiths, the Malthuses, the Says—have not however escaped, I do not say from refutation, for that is always legitimate, but from calumny, disparagement, and insult. To attack their writings, and even their motives, has become fashionable. It may be said, perhaps, that in this chapter I am furnishing arms to their detractors, and truly the moment would be ill chosen for me to turn against those whom I candidly acknowledge as my initiators, my masters, and my guides. But supreme homage is, after all, due to Truth, or what I regard as Truth. No book was ever written without some admixture of error. Now, a single error in Political Economy, if we press it, torture it, deduce from it rigorously its logical consequences, involves all kinds of errors—in fact, lands us in chaos. There never was a book from which we could not extract one proposition, isolated, incomplete, false, including consequently a whole world |