The Contemporary Review, Volume 36, December 1879Various
Religion
The Contemporary Review, Volume 36, December 1879
Various
Arts -- Periodicals; Literature -- Periodicals; Political science -- Periodicals
2. It is clear that tithes, poor-rates, and other permanent charges,
fall upon the landlord's rent, and not on the farmer's profit.
They diminish rent. This is a point on which much misunderstanding
prevails. A loud outcry is raised amongst tenants at this time of
agricultural suffering against the heavy payments demanded of them
for special taxes imposed upon land; a strong agitation is rising to
obtain their repeal, as being unjustifiable wrongs inflicted on the
most meritorious of industries. It is not perceived that these
charges figured as items in the cost of production when the farmer
was calculating what rent the farm would warrant him to pay: they
diminished the rent at the cost of the landlord. Tithes and rates took
their places in the estimate of the debit side quite as really as
the number of horses, or the quantity of manure, which the farm would
require. We have seen that rent makes its appearance only after every
expense has been provided for, and a legitimate profit secured; then,
and not till then, the calculation of the rent begins. If the farming
world succeeds in removing these burdens, wholly or in part, from
the shoulders of the tenants, there can be no doubt that rents will
proportionately rise. The landlords would argue, with entire justice,
that all other circumstances remaining the same, the collective
farming profit had become larger by the disappearance of these taxes,
and as the tenant was entitled only to his natural rate of profit, the
increase of surplus would legitimately belong to him. If the tenant
repelled such a claim, the landlord would be easily able to obtain the
rent he claimed from competing farmers who would be satisfied with the
natural profit of the business.
One exception, however, must be allowed to this conclusion--the case,
namely, of a tenant who, upon a long lease, had contracted to pay a
definite rent for many years. Such a tenant has taken upon himself the
chances of the cost of production during a lengthened period, it
may be nineteen or twenty-one years, being larger or smaller. If it
diminishes during the interval, he gains: if it increases, he loses.
Practically he has insured the landlord's rent, during the continuance
of the lease, against diminution. For all increase or diminution of
rates he fares as if he were the landlord.
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