I have now read with great attention your essay on the rise and progress
of Rent[74], with a view of selecting every passage which might afford
us subject for future discussion. It is no praise to say that all the
leading principles in it meet with my perfect assent, and that I
consider it as containing many original views which are not only
important as connected with rent, but with many other difficult points,
such as taxation, etc., etc.
I cannot, however, help regretting that you did not consider separately
the relations of rent with the profits of stock and the wages of labour.
By treating of the joint effect of the two latter on rent you have, I
think, not made the subject so clear as it might have been made.
There are some parts in the essay with which I cannot agree. One of
these is the effects of improvements, whether in the practice of
agriculture or in the implements of husbandry, on rent. They appear to
me in their immediate effects to be beneficial to the farmer only and
not to the landlord. All the augmented produce obtained, or the saving
in obtaining the same quantity of produce is, I think, wholly to the
advantage of the farmer, and that the landlord only benefits remotely
from it, as it may encourage accumulation and the cultivation of poorer
lands. I think too that rents are in no case a creation of wealth; they
are always a part of the wealth already created, and are enjoyed
necessarily, but not on that account less beneficially to the public
interest, at the expense of the profits of stock[75].
Viewing rents in this light, it follows that I must withdraw the
concession which I was inclined to make when you first started the
question 'whether, in importing corn at a cheaper price than we could
grow it, the whole difference of price was saved, or whether some
abatement should not be made from the advantage for the loss of rent?'
as I now decide[d]ly think that the whole difference of price would be
gained without any deduction whatever. The arguments then of those who
contend for a free trade in corn remain in their original full force, as
rents are always withdrawn from the profits of stock. I will try, if I
have a little leisure, to put my thoughts on this subject on paper, and
shall attempt to show that the effects of a tax and of rent are very
different as far as regards importation. It may be economical to grow
corn if its price is raised merely by taxation, as by importing it a
part of the tax would be wholly lost to the country [import]ing it. No
such consideration should influence us [with regar]d to rent being lost.
I differ, as you know, as to the effects of taxation on the growth of
produce. You appear to me not quite consistent in admitting, as you
unequivocally do, that the last portion of land cultivated yields
nothing more than the profits of stock, no rent, and yet to maintain
that taxes on necessaries or on raw produce fall on the landlord and not
on the consumer.
... I have paid Wettenhall L2 8_s._ for two years' lists, but it has
since occurred to me that I paid him and you paid me for one year, and
therefore that only one year can be due to him. If so, let me know, that
I may get back L1 4_s._
Ever yours,
DAVID RICARDO.