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? [p284]
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? [p285]
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 [p286] cured the labourers of their infatuation, and they returned to ask employment from the capitalists; but it was too late.”—Proceedings of the South Australian Association.