Angus explained that as rent rises in consequence of a rise of prices, and a rise of prices shows that the article is in request, and that there are purchasers able to buy it, a rise of rent is a symptom of wealth, though many people err in supposing it a cause.
Mr. Callum observed that many wished for an abolition of rent, because they thought high prices an evil in every case.
“Well,” said Fergus, “surely everybody had rather pay little than much for a peck of oatmeal.”
“That depends on what causes the prices to be low or high,” replied Callum. “If I take upon myself to forbid anybody in these islands to buy oatmeal in Lorn when they have not enough at home, or if a bad season should make a scarcity, and prices should rise in consequence, such a rise of prices would be an evil, because the people would not have any more wealth to give in exchange than if the meal was plentiful. But if (which is a very different case) farmers find that their customers have money enough to buy more and more oatmeal, and make it worth the farmers’ while to take poorer and poorer soils into cultivation, the consequent rise of price is no evil. It not only shows that wealth is increasing, but also helps to increase it;—it causes oats to grow where only heather grew before.”
“But after all,” said Ronald, “the landlord gets all the benefit of the change. He grows richer and richer, the more prices rise.”
“Not so,” replied Angus. “Do not you remember my telling you that there is a perpetual tendency to render the productiveness of land more equal by improvements in the art of cultivation? and rent depends not on the quantity produced, but on the inequality in the productiveness of soils. An estate which once yielded one-third of its produce to the landlord may afterwards yield him only one-fourth, and then again one-fifth, though he may receive a larger amount of rent each time.”
“This has actually been the case,” said Callum; “and therefore it is a mistake to say that the landlord has all the advantage of a rise of prices.”
“I should like to know,” said Fergus, “what would happen if landlords had no rent, and so bread became cheaper.”
“If landowners gave away their land! Very reasonable truly!” exclaimed Callum.
“I rather think,” said Angus, “that the first consequence would be that there would soon be no landlords. All land would be in the possession of those who would cultivate it themselves, and then, in consequence of a fall of prices, inferior lands would be let out of tillage, there would be less food raised, and things would go back to the state they were in centuries ago.”