ing tillage and pasturage on the same farm, contributes so powerfully to sustain and augment the fertility of the soil; that the surplus produce for the supply of towns would have been inconsiderable at all times, and from the general poverty of small tenants brought to market in too great abundance in the early part of the season, instead of apportioning it over the whole year; and in bad seasons there would have been no surplus at all :and that in short, as no person of capital or enterprise would even have entered into the profession, our extensive moors and morasses, and indeed all our inferior soils, must have remained in their natural state, or been partially and most unprofitably improved under the delegated management of great proprietors."

It is now, I think, high time to conclude the subject of agriculture; and it is necessary to say only a few words on Mining, a branch of industry which I have placed next to agriculture, on account of its analogy to it, in affording a rent.

Mines, like land, generally yield a rent to the proprietor as well as profits to the undertaker, whose capital is employed in working them. The coal mines, notwithstanding the great assistance derived from machinery, give work to several hundred thousand laborers who earn their maintenance, besides the profits of their employer, and the rent of the proprietor; and this rent is in general more considerable than that of agricultural land, as the produce of coal mines is more valuable than that of the soil.

Caroline. The mines that contain metals are, I suppose, of still greater value?

-649.

648. Why is mining placed next in order to agriculture?How many persons are employed in the coal mines of England? -650, Why is rent from mining more than agricultural land? -651, What is said of the value and the rent of mines that con

tain metals?

Mrs B. Yes, and their rent proportionally higher; but the profits of the capitalists who rent them, and of the laborers who work them, is not greater. As the value of a mine, however, depends upon the quantity, as well as on the quality of the metal it affords, it frequently happens that a lead mine will fetch a higher rent than a silver mine. The expense of working coal mines is less than that of metallic mines. The coal requires nothing more than to be extracted from the earth: but with the metals the labor is much more complicated; they must be separated from the ore in the furnace, and undergo a variety of processes before they are fit for the purposes of art.

The risk and uncertainty attending mining is greater than that of any other employment of capital; and accordingly we find both larger fortunes made, and more people ruined in that than in any other branch of industry.

Caroline. The chance of gain then compensates for the risk of loss; but upon the whole I suppose the profits are similar to those derived from other modes of employing capital?

Mrs B. I am inclined to believe the profits of mining to be rather lower than the common standard. In all hazardous enterprises men are prone to trust to their good fortune, and generally consider the chances more in their favor than an accurate calculation would warrant. This is evinced by the readiness with which men venture to stake their money in the lottery; though it is well known that the chances of gain are decidedly against them. A mine is a more advantageous lottery no doubt

652. What is said of the profits of them?- -653. Why is a lead mine sometimes more valuable than a silver one? -654. What is said of the risk and uncertainty of mining?- -655. How do the profits of mi ing compare with other modes of employing capital? -656. Why then are persons disposed thus to invest capital?

than that of government, but it contains a prodigious number of blanks, and only a few great prizes. Sanguine hopes and expectations in some measure supply the place of actual gains; yet if the average profits of mining should at any time fall so low as to discourage the spirit of enterprise, and diminish the requisite supply of metals, their price would rise until it had brought back a sufficient capital to that branch of industry.

I have mentioned fisheries as a source of employment for capital, and a means of affording a revenue. Very large capitals are engaged in the whale, the cod, and the herring fisheries, besides those smaller ones which supply the country with fresh fish. But as the sea in which these fisheries are carried on, is not susceptible of becoming private property, they yield no rent. There are however some considerable inland river fisheries which belong to individuals, and bring in a rent. No fewer than fortyone different salmon fisheries upon the river Tweed are rented for several thousands a year; and I am informed that the duke of Gordon lets a salmon fishery on the Spey for 7000l. a year. In the Scotch fisheries it is very common to take four or five score of salmon at a draught. In England there are also considerable salmon fisheries in the Tyne, the Trent, the Severn, and the Thames.

We have already noticed the manner in which a revenue is obtained from manufactures; what further observations we have to make on this branch of industry we shall defer till we enter on the subject of trade, with which it is so naturally connected.

657. What would be the consequence, if the spirit of enterprise should be discouraged, by the low average profits of mining? 658. What other source of employment for capital is mentioned?

-659. In what description of fisheries are large capitals employed?-660. What fisheries yield a rent?--661. For what sum does the salmon fishery on the Spey rent?-662. What is said of the Scotch fisheries?

Caroline. And will that be the subject of our next conversation?

Mrs B. No; we have yet many general remarks to make upon revenue. And it will be necessary also,

before we turn our attention to trade or commerce, that you should understand the nature and use of money, without a knowledge of which it would be extremely difficult to render the subject clear and perspicuous.

+

CONVERSATION XIV.

ON THE REVENUE OF THOSE WHO DO NOT EMPLOY THEIR CAPITAL THEMSELVES.

Rent; or income derived from letting land.—Interest of Money, or Income derived from Loans.- Causes of the different rate of Interest yielded by land or by money.

Causes of the fluctuations of Interest.-Rate of interest in India, in China, and in America.-of Usury.-Government Loans, or income derived from the funds. Of unproductive laborers, or those who derive an income from the expenditure of others.

CAROLINE.

I THINK I now understand very well how an income is derived from agriculture and manufactures; and also how it is produced by trade; but there are many men of property who follow none of these occupations; how, therefore, can their capital yield an income?

Mrs B.

When a man possesses a very large pro

663. What should one understand before attention is turned to trade and commerce?--664. With what question does Caroline commence the 14th conversation?--665. How is her question

answered?

perty, he frequently will not be at the trouble of employing it himself; but will engage some other person, to do it for him. You have seen that a landed proprietor who does not farm his own estate derives a revenue from the farmer in the form of rent.

Caroline. But I allude to men of fortune without landed property, who live upon their income, although their capital is not employed.

Mrs B. Reflect a moment and you will be convinced that no capital can yield an income without being employed. If, therefore, the owner does not invest it in some branch of industry himself, another person must do it for him. A capitalist under such circumstances may be supposed to say "I am possessed of an ample stock of subsistence for laborers and of materials for workmanship, but I will engage some other person to take charge of so troublesome an undertaking as that of setting the people to work, and collecting the profits derived from their labors."

Caroline. This person must be handsomely remunerated for the time and pains he bestows on the management of a capital which is not his own.

Mrs B. No doubt; a considerable share of the profits derived from the use of capital must go to him who takes charge of it but when a man's property is very large, he would rather lose that share than be at the trouble of managing it himself. Thus you see that the employer and the proprietor of capital are frequently different persons.

Caroline.

Yet I do not recollect ever to have heard of a man of fortune making use of an agent to employ his capital.

666. Can any capital yield an income without being employed? -667. How would a person possessed of capital which he did not wish to employ himself reason upon the subject?- -668. Is the employer of capital always the same person who owns it?