“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 [p261] to the land on condition of labour, but that now they are excluded and robbed of their natural patrimony.” I answer, No—they are neither excluded nor robbed—they enjoy, gratuitously, the utility contributed by the soil on condition of labour, that is to say, by repaying that labour to those who have saved it to them.
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, [p262] all human intervention? Must I admit that the productive and indestructible powers of the soil have value? In that case, why should they have no value in the countries through which I have passed? And, besides, since the powers of the soil surpass so enormously the powers of men, which, as Blanqui well remarks, can never go the length of creating the phenomena of germination, why should these marvellous powers be worth no more than a dollar?
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 [p263] ought, over and above the double remuneration you point at, to derive a profit from the productive and indestructible powers of the soil, and levy a tax on the gifts of God.
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? [p264]
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.” [p265]
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 [p266] advantage,—above all, that he levies no tax upon the gratuitous liberality of nature. How could it be so, if we suppose men to be free? Have not people who are possessed of capital and energy a perfect right to make a choice between agriculture, manufactures, commerce, fisheries, navigation, the arts, or the learned professions? Will not capital and industry always tend to those departments which give extraordinary returns? Will they not desert those which entail loss? Is this inevitable shifting and redistribution of human efforts not sufficient to establish, according to our hypothesis, an equilibrium of profit and remuneration? Do agriculturists in the United States make fortunes more rapidly than merchants, shipowners, bankers, or physicians,—as would necessarily happen if they received the wages of their labour like other people, and the recompense of nature’s work into the bargain?
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 [p267] seized the reins of government, and passed an act interdicting all new clearances, the consequence undoubtedly would be a temporary increase of their profits. I say temporary, for the natural laws of society would be wanting in harmony if the punishment of such a crime did not spring naturally from the crime itself. Speaking with scientific exactitude, I should not say that the new law we have supposed would impart value to the powers of the soil, or to natural agents (were this the case, the law would do harm to no one);—but I should say, that the equilibrium of services had been violently upset; that one class robbed all other classes, and that slavery had been introduced into that country.
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, [p268] and it is quite impossible to make them pass for more than they are worth. I add, that they are worth no more (cæteris paribus) than services of any other description. As the manufacturer, after charging for his time, his anxiety, his trouble, his risk, his advances, his skill (all which things constitute human service, and are represented by value), can demand no recompense for the law of gravitation, the expansibility of steam, the assistance of which he has availed himself of,—so in the same way, Jonathan can include in the value of his grain only the sum total of the personal services, anterior or recent, and not the assistance he has derived from the laws of vegetable physiology. The equilibrium of services is not impaired so long as they are freely exchanged, the one for the other, at an agreed price; and the gifts of God, of which these services are the vehicle, given on both sides into the bargain, remain in the domain of community.
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 [p269] pretensions of the other. Such a legislative measure would be as iniquitous as the one to which we have just alluded. The effect would be quite the same as if Jonathan, having carried to market a sack of corn, which in other circumstances would have sold for fifteen francs, should present a pistol at the purchaser’s head, and say, Give me three francs more, or I will blow out your brains.
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 [p270] the extreme limit of the means of subsistence which the earth can afford.
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 [p271] quantity of subsistence, and by the division of inheritances puts each family in a situation to estimate the danger to itself of an imprudent multiplication. It is very clear that any other régime—Communism, for example—would be at once a less effective spur to production, and a less powerful curb to population.
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 [p272] admissible rule? Does not analogy tell us that an impenetrable veil conceals from us the power—the indefinite power it may be—of art? The savage who lives by the chase requires a square league of territory. What would be his surprise were he told that the pastoral life enables ten times the number of men to subsist upon the same space? The nomad shepherd would, in like manner, be quite astonished to be told that a system of triennial cultivation [la culture triennale] admits easily of a population ten times greater still. Tell the peasant accustomed to this routine that the same progress will again be the result of alternate culture60 [la culture alterne], and he will not believe you. Alternate culture is for us the latest improvement—Is it the latest improvement for the human race? Let us comfort ourselves regarding the future destiny of the species—a long tract of ages is before us. At all events, let us not require Political Economy to resolve problems which are not within her domain—and let us with confidence commit the destinies of future races to the keeping of that great and good and wise Being who shall have called them into existence.
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, [p273] it is filtered and purified through beds of schist and gravel. It ramifies and distributes itself, and supplies and feeds refreshing springs in all parts of the world. Here we have an immense and ingenious industry carried on by nature for the benefit of the human race. Change of form, change of place, utility, nothing is wanting. But where is value? Value has not yet come into existence; and if what we must call the work of God is to be paid for (it would be paid for if it possessed exchangeable value)—who could tell the value of a single drop of this precious liquid?
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 [p274] been an immense, a measureless, amount of natural industry at work, the secrets of which the most advanced science can yet give no account of. Gases, salts, are diffused through the soil and the atmosphere. Electricity, affinity, the wind, the rain, light, heat, vegetable life, play successively their parts, often unknown to us, in transporting, transforming, uniting, dividing, combining these elements; and this marvellous industry, the activity and utility of which elude our appreciation and even our imagination, has yet no value. Value makes its appearance at the first intervention of the labour of man, who has, in this, more perhaps than in the other instance we have given, a supplementary labour to perform, in order to complete what nature has begun.
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 [p275]
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, [p276] has no value yet in this respect. This natural power, which was gratuitous then, is gratuitous now, and will be always gratuitous. We may say, indeed, that the land has value, but when we go to the root of the matter we find, that what possesses value is the human labour which has improved the land, and the capital which has been expended on it. Hence it is rigorously exact to say that the proprietor of the land is, after all, the proprietor only of a value which he has created, of services which he has rendered; and what property can be more legitimate? It is property created at no one’s expense, and neither intercepts nor taxes the gifts of God.
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 [p277] equally certain that the other species of labour—rude, unskilled, present, direct labour—is rendered unnecessary in a still greater proportion; so that each crop is obtained by the proprietor, and consequently by the consumer, on easier terms, on less onerous conditions—the proper action of capital consisting precisely in substituting natural and gratuitous co-operation for human labour which must be paid for.
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 [p278] the same remark applies. Having filled up the drain, demolish the fence, and so force the agriculturist to mount guard upon his field; destroy the well, pull down the barn, dig up the road, burn the plough, efface the levelling, remove the artificial mould; replace in the field the loose stones, the weeds, the roots of trees; you will then have realized the Utopia of Equality. The land, and the human race along with it, wall have reverted to the primitive state, and will have no longer any value. The crops will have no longer any connexion with capital. Their price will be freed from that accursed element called interest. Everything, literally everything, will be done by actual labour, visible to the naked eye. Political Economy will be much simplified. Our country will support a man to the square league. The rest of her inhabitants will have died of hunger;—but then it can no longer be said that property is a monopoly, an injustice, and a theft.
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].