it is increased before new land is brought into cultivation, it seems to supersede the necessity of that measure. Is it not rather inconsistent to say, that because the augmenting population is supplied by an increased capital, it requires a still further addition to it? MRS. B. Capital does not consist solely of the necessaries of life, but includes also conveniences, comforts, and luxuries; capital may increase, therefore, without an augmentation of food. Mr. Ricardo has so clearly explained this, in his recent treatise on Political Economy, that I cannot do better than to read you the passage -: "When a high price of corn is the effect of an "increasing demand, it is always preceded by an "increase of wages; for demand cannot increase "without an increase of means in the people to pay "for that which they desire. An accumulation of "capital naturally produces an increased competi"tion among the employers of labour, and a consequent rise in its price." 66 CAROLINE. Yes, I recollect that was the case in our colony. MRS. B. (reading). "The increased wages are not immediately "expended on food, but are first made to contri "bute to the other enjoyments of the labourer. "His improved condition, however, induces and "enables him to marry, and then the demand for "food for the support of his family naturally "supersedes that of those other enjoyments on " which his wages were temporarily expended. Corn "rises, then, because the demand for it increases, "because there are those in the society who have " improved means of paying for it; and the profits "of the farmer will be raised above the general "level of profits, till the requisite quantity of "capital has been employed on its production. "Whether, after the supply has taken place, corn shall again fall to its former price, or shall "continue permanently higher, will depend on the "quality of the land from which the increased "quantity of corn has been supplied. If it be "obtained from land of the same fertility as that "which was last in cultivation, and with no greater "cost of labour, the price will fall to its former state; if from poorer land, it will continue per"manently higher." 66 You see, therefore, that your observation, that the rise of raw produce should precede the cultivation of inferior soils, is perfectly just. But you must remember that the cause of the original rise of price, and that which subsequently produces its permanent continuation, are quite distinct; the first ceases, and the second commences as soon as the new crops are brought to market. Every time that inferior land is brought into culture, the price of raw produce, and consequently the profits of farming, must have previously risen. This occurs more or less at every progressive step made in agriculture. No new land can be cultivated till capital has accumulated to maintain and employ a greater number of labourers. And no new land will be cultivated till population has so far increased as to raise the price of corn, and make it answer to the agriculturist to break up new land for tillage. CAROLINE. Since my last observation has proved just, I will venture to make another. The rise of wages in consequence of accumulation of capital should be followed by a diminution of profits; this, therefore, would also precede the cultivation of inferior soils. MRS. B. And it does so. But the diminution of profits arising from abundance of capital and consequent increase of wages, is, like its cause, but temporary. It is soon followed by an increasing population and demand for food. The enhanced price of raw produce then repays the farmer the expense of high wages, and his profits are for a time even higher than those of other employments of capital. CAROLINE. Then, will not also the landlord come upon him for rent, previously to the cultivation of inferior soils? MRS. B. No, not any more than he would for having had a remarkably productive crop, his extraordinary profits being only temporary. If, as we have already observed, the increased demand for corn is supplied by land of as good quality as that previously cultivated, corn will fall to its former price, just as cloth or linen would first rise in price by an increasing demand, and fall again when that demand was supplied. But if the additional supply of cloth or linen could only be produced at a greater expense than before, those commodities could not then fall to their former price. An additional supply of corn is almost always produced under this disadvantage, being raised on land of inferior quality corn therefore will remain permanently higher priced; and it is not till then that the landlord comes upon the cultivator of the better soil for rent. Increase of capital could never produce a permanent fall of profits; for as soon as population: increased to correspond with the capital, labour would fall, and profits be restored to their former rate. It is only when the cost of production of food is increased, that the rise of wages and diminution of profits is permanent. CAROLINE. But, Mrs. B., is there any cultivated land in this country which can afford no rent? I know that gentlemen frequently farm their own estates, but it is with a view either to amusement or advantage, not because they could not obtain a rent for them. MRS. B. England is so far advanced in wealth and population, and has brought such numerous gradations of soil successively into cultivation, that I do not suppose there are now any considerable tracts of land under tillage which afford no rent; but in countries that have made less progress, such as Poland, Russia, and America, we know this to be the case; and in this country, as there is yet land which is suffered to lie waste, because at the present price of corn it is not worth cultivating independently of rent, it is not natural to suppose that from such very poor land we should suddenly rise to that of so good a quality that it will yield both rent and profit; there must undoubtedly be some of an intermediate nature, which will afford the usual rate of profit to the cultivator, but will produce no rent. The inclosure of commons may afford us an |