(To these arguments Engels replies:)
The theory of ground-rent is a special English economic matter, and this of necessity because only in England does a mode of production exist by which rent is separated from profit and interest. In England there prevail the greater landlordism and the greater agriculture. The individual landlords lease their lands in great farms to lessees who are able to cultivate them in a capitalistic fashion and do not, like our peasants, work with their own hands, but employ laborers just like capitalistic entrepreneurs. We have here then the three classes of bourgeois society, and the income which each receives—the private landlord in the form of ground-rent, the capitalist in that of profit and the laborer in the form of wages. No English economist has ever regarded the profit of the lessee as Herr Duehring does and still less would he have to explain that the profit of the lessee is what it indubitably is, profit on capital. In England there is no use to discuss this question for the question as well as its answer are obvious from the facts and, since the time of Adam Smith, there has been no doubt at all about it.
The case in which the lessee cultivates his own land, as the rule in Germany, for the profit of the ground landlord does not make any difference in this respect. If the landlord cultivates the land for his own profit and furnishes the capital he puts the profit on capital in his pocket as well as the ground-rent for it cannot be otherwise under existing conditions. And if Herr Duehring thinks that rent is something different when the lessee cultivates the land for himself it is not so and only shows his ignorance of the matter.
For example:—
"The revenue derived from labor is called wages; that derived from stock by the person who manages or employs it is called profit. The revenue which proceeds from land is called rent and belongs altogether to the landlord. The revenue of the farmer is derived partly from his labor and partly from his stock.... When those three different sorts of labor belong to different persons they are readily distinguished, but when they belong to the same they are sometimes confounded with one another at least in common language. A gentleman who farms part of his own estate, after paying the expenses of cultivation, should gain both the rent of the landlord and the profit of the farmer. He is apt to denominate, however, his whole gain, profit, and thus confounds rent with profit, at least in common language. The greater part of our North American and West Indian planters are in this situation. They farm, the greater part of them, their own estates, and accordingly we seldom hear of the rent of a plantation but frequently of its profit.... A gardener who cultivates his own garden with his own hands, unites in his own person the three different characters of landlord, farmer, and laborer. His produce, therefore, should pay him the rent of the first, the profit of the second and the wages of the third. The whole, however, is commonly considered as the wages of his labor. Both rent and profit are in this case confounded with wages."
This passage is in the sixth chapter of the first book of Adam Smith. The case of the landholder who tills his own land has been examined a hundred years ago and the doubts which perplex Herr Duehring so much are caused entirely by his own ignorance.
X. With Respect to the "Critical History".
This which is the concluding portion of the Second Division of the work and which deals with Herr Duehring's estimates of economic writers is omitted as being of too limited and polemic a character for general interest.