Principles of Political EconomyPerry, Arthur Latham
General
Principles of Political Economy
Perry, Arthur Latham
Economics
Now, then, since commodities of the second class in the cost of their
production must respond not only to the _current_ cost of Labor and
Capital in bringing them to market, but also something additional in
the way of Rent to the _past_ cost of the implement, the land-parcel,
without whose contributing agency present results could not be gained;
_Rent is the Rendering for the present use of a Valuable made such by
past Labor and Capital._ Land-parcels leased for agriculture; mines
and the access to them leased for the production of metals and
minerals; and forests whose growth has been permitted by the past
_abstinence_ of their owners; all properly yield a rent; because these
forms of capital, whose existence is due to past labor and capital,
are present contributors to products, whose sale must compensate not
only present labor and the use of current capital, but also the use of
these more permanent forms of capital long ago created.
A competent authority estimated in 1881, that the land-parcels of the
United Kingdom of Great Britain were worth £3,000,000,000; and there
were at the same time 6,000,000 of inhabited houses, excluding
factories and business premises and tenements renting for £20 and
under. Most of these lands and houses are rented by their owners to
the actual occupiers on the just principle explained above, inasmuch
as the lease-system is the prevailing one in that country. According
to the Census of 1880, there were 4,008,907 so-called farms in the
United States in that year. Most of these are held in fee simple, and
are tilled by their owners; but just so far as land-patches and
forests and mines are leased in this country, their products must
provide in their price of sale for current rents, as well as current
costs of present production. This is just as it should be, and just as
it must be, if Capital is to take this form of assisting the processes
of future production.
Public-domain text, read in full here on John Shaqi.
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