第23章

Iftheaboveresult——thesatisfactionofthedemandwithAexcluded——hadbeenaccomplished，perchance，bytheinvestmentofmorethandoublethecapitalinCorD，orinboth，thenthematterwouldassumeadifferentaspect。Forexample，ifthethirdinvestmentofcapitalweremadeinC:

TABLEIVaTypeofsoilAcresCapital£；Profit£；PriceofProd。£；OutputQrsSellingprice£；Proceeds£；RentRateofSurplusProfitInGrainQrsInMoney£；

B1516411/26000%

C171/211/29911/2131/2341/260%

D1516811/21246120%*

Total3171/231/22121311/27101/2Inthiscase，comparedwithTableIV，theoutputfromChasrisenfrom6to9qrs，thesurplus-productfrom2to3qrs，andthemoney-rentfrom£；3to£；41/2。ComparedwithTableII，wherethelatterwas£；12，andTableI，whereitwas£；6，themoney-renthas，ontheotherhand，decreased。Thetotalrentalingrain=7qrsandhasfallencomparedwithTableII(12qrs)andrisencomparedwithTableI(6qrs)；inmoney(£；101/2)ithasfallencomparedwithboth(£；18and£；36)。

Ifthethirdinvestmentofcapitalof£；21/2hadbeenemployedonsoilB，itwouldindeedhavealteredthequantityofproduction，butwouldnothaveaffectedtherent，since，accordingtoourassumption，thesuccessiveinvestmentsdonotproduceanydifferencesuponthesamesoilandsoilBdoesnotyieldanyrent。

Ifweassume，ontheotherhand，thatthethirdinvestmentofcapitaltakesplaceuponDinsteadofC，wehavethefollowing，TableIVb:

TypeofsoilAcresCapital£；Profit£；PriceofProd。£；OutputQrsSellingprice£；Proceeds£；RentRateofSurplusProfitInGrainQrInMoney£；

B1516411/26000%

C1516611/292360%

D171/211/291211/21869120%*

Total3171/231/2212233812Herethetotalproductis22qrs，morethandoublethatofTableI，althoughtheinvestedcapitalisonly£；171/2asagainst£；10，thatis，nottwicetheamount。Thetotalproductisalsolargerby2qrsthanthatofTableII，althoughtheinvestedcapitalinthelatterislarger——namely，£；20。

ComparedwithTableI，therentingrainfromsoilDhasincreasedfrom3[IntheGerman1894editionthisreads:2。朎d。]to6qrs，whereasthemoney-rent，£；9，hasremainedthesame。ComparedwithTableII，thegrain-rentfromDisthesame，namely，6qrs，butthemoney-renthasfallenfrom£；18to£；9。

Comparingthetotalrents，thegrain-rentfromTableIVb=8qrsislargerthanthatfromTableI=6qrsandthanthatfromTableIVa=7

qrs；butitissmallerthanthatfromTable11=12qrs。Themoney-rentfromTableIVb=£；12islargerthanthatfromTableIVa=£；101/2andsmallerthanthatfromTable1=£；18andthatfromTableII=

£；36。

Inorderthatthetotalrentalmay，undertheconditionsofTableIVb(withtheeliminationofrentfromB)，beequaltothatofTableI，weneed£；6moreofsurplus-product，thatis，4qrsat£；11/2，whichisthenewpriceofproduction。Wethenhaveatotalrentalof£；18

againasinTableI。ThemagnitudeoftherequiredadditionalcapitalwillvaryaccordingtowhetherweinvestitinCorD，ordivideitbetweenthetwo。

OnC，£；5capitalyields2qrsofsurplus-product；consequently，£；10additionalcapitalyields4qrsofadditionalsurplus-product。

OnD，£；5additionalcapitalwouldsufficetoproduce4qrsofadditionalgrain-rentundertheconditionsassumedhere，namelythattheproductivityoftheadditionalinvestmentsofcapitalremainsthesame。Weshouldthenobtainthefollowingresults:

TABLEIVcTypeofsoilAcresCapital£；Proft£；PriceofProd。£；OutputQrsSellingprice£；Proceeds£；RentRateofSurplusProfitQrs£；

B1516411/26000%

C1153181811/2276960%

D171/211/291211/21869120%*

Total3271/251/23334511218TABLEIVdTypeofsoilAcresCapital£；Proft£；PriceofProd。£；OutputQrsSellingprice£；Proceeds£；RentRateofSurplusProfitQrs£；

B1516411/26000%

C1516611/292360%

D1121/221/2152011/2301015120%*

Total3221/241/22730451218Thetotalmoneyrentalwouldbeexactlyone-halfofwhatitwasinTableII，wheretheadditionalcapitalswereinvestedatconstantpricesofproduction。

ThemostimportantthingistocomparetheabovetableswithTableI。

Wefindthatwhilethepriceofproductionhasfallenbyone-half，i。e。，from60shillingsto30shillingsperquarter，thetotalmoneyrentalhasremainedthesame，namely=£；18，andthegrain-renthascorrespondinglydoubledfrom6to12qrs。UponBtherenthasdisappeared；uponCthemoney-renthasrisenbyone-halfinlVc，buthasfallenbyone-halfinIVd；uponD

inIVc，ithasremainedthesame，=£；9，andhasrisenfrom£；9

to£；15inIVd。Theproductionhasrisenfrom10to34qrsinIVe，andto30qrsinIVd；theprofitfrom£；2to£；51/2inIVcandto£；4inIVd。Thetotalinvestmentofcapitalhasrisenintheonecasefrom£；10to£；271/2，andintheotherfrom£；10to£；221/2；i。e。，inbothcasesithasmorethandoubled。Therateofrent，thatis，therentcalculatedontheinvestedcapital，isinalltablesfromIVtoIVdeverywherethesameforeachkindofsoil——whichwasalreadyimpliedintheassumptionthattherateofproductivityforthetwosuccessiveinvestmentsofcapitalremainsthesameforeachsoiltype。ButcomparedwithTableIthisratehasfallen，bothfortheaverageofallkindsofsoilandforeachoneofthemindividually。InTableIitwas=180%onanaverage，whereasinIVcit=(18/271/2)x100=

655/11%andinIVdit=(18/221/2)

x100=80%。Theaveragemoney-rentperacrehasrisen。Formerly，inTableI，itsaveragewas£；41/2peracrefromallfouracres，whereasinIVcandIVditis£；6peracreuponthethreeacres。

Itsaverageupontherent-bearinglandwasformerly£；6，whereasnowitis£；9peracre。Hencethemoney-valueoftherentperacrehasrisenandnowrepresentstwiceasmuchgrainasitdidformerly；butthe12qrsofgrain-rentarenowlessthanone-halfofthetotaloutputof34and30[IntheGerman1894editionthisreads:33and27。？Ed。]

qrsrespectively，whereasinTableIthe6qrsrepresent3/5ofthetotaloutputof10qrs。Consequently，althoughtherentasanaliquotpartofthetotaloutputhasfallen，andhasalsofallenwhencalculatedontheinvestedcapital，itsmoney-valuecalculatedperacrehasrisen，andstillmoreitsvalueasaproduct。IfwetakesoilDinTablelVd，wefindthatthepriceofproductioncorrespondingtothecapitaloutlayhere=£；15，ofwhich£；121/2isinvestedcapital。Themoney-rent=£；15。InTableI，forthesamesoilD，thepriceofproductionwas=£；3，theinvestedcapital=

£；21/2，andthemoney-rent=£；9；thatis，thelatterwasthreetimesthepriceofproductionandalmostfourtimesthecapital。InTablelVd，themoney-rentforD，£；15，isexactlyequaltothepriceofproductionandlargerthanthecapitalbyonly1/5。Nevertheless，themoney-rentperacreis2/3larger，namely，£；15insteadof£；9。InTableI，thegrain-rentof3qrs=3/4ofthetotalproductof4qrs；inTableIVditis10qrs，orone-halfthetotalproduct(20qrs)peracreofD。

Thisshowsthatthemoney-valueandgrainvalueoftherentperacremayrise，althoughitconstitutesasmalleraliquotpartofthetotalyieldandhasfalleninproportiontotheinvestedcapital。

ThevalueofthetotalproductinTable1=£；30；therent=£；18，ormorethanone-halfofit。ThevalueofthetotalproductinIVd=£；45，ofwhichtherent=£；18，orlessthanone-half。

Now，thereasonwhyinspiteofthefallinpriceby£；11/2perquarter，i。e。，afallof50%，andinspiteofthereductionincompetingsoilfrom4to3acres，thetotalmoney-rentremainsthesameandthetotalgrain-rentisdoubled，while，calculatedperacre，boththegrain-rentandmoney-rentrise，isthatmorequartersofsurplus-productareproduced。Thepriceofgrainfallsby50%，andthesurplus-productincreasesby100%。Butinordertoobtainthisresult，thetotalproductionundertheconditionsassumedbyusmustbetrebled，andtheinvestmentofcapitalinthesuperiorsoilsmustbemorethandoubled。Atwhatratethelattermustincreasedependsinthefirstplaceuponthedistributionofadditionalcapitalinvestmentsamongthebetterandbestsoils，alwaysassumingthattheproductivityofthecapitalinvestedineachsoiltypeincreasesproportionatelytoitsmagnitude。

Ifthefallinpriceofproductionweresmaller，lessadditionalcapitalwouldberequiredtoproducethesamemoney-rent。IfthesupplyrequiredtothrowsoilAoutofcultivation-andthisdependsnotmerelyupontheoutputperacreofA，butalsoupontheshareheldbyAintheentirecultivatedarea——thus，ifthesupplyrequiredforthispurposewerelarger，andtherebyalsotheamountofadditionalinvestedcapitalrequiredinsoilsbetterthanA，then，othercircumstancesremainingthesame，themoneyandgrainrentswouldhaveincreasedstillmore，althoughsoilBwouldhaveceasedyieldingmoneyandgrainrents。IfthecapitaleliminatedfromAhadbeen=£；5，thetablestobecomparedforthiscasewouldbetablesIIandIVd。Thetotalproductwouldhaveincreasedfrom20to30

qrs。Themoney-rentwouldbeonlyhalfaslarge，or£；48insteadof£；36；thegrain-rentwouldbethesame，namely=12qrs。

Ifatotalproductof44qrs=£；66couldbeproduceduponDwithacapital=£；271/2——correspondingtotheoldrateforD，4qrsper£；21/2capital——thenthetotalrentalwouldoncemorereachthelevelattainedinTableII，andthetablewouldappearasfollows:

TypeofSoilCapital£；OutputQrsGrain-RentQrsMoney-Rent£；

B5400

C5623

D271/2442233

Total371/2542436Thetotalproductionwouldbe54qrsasagainst20qrsinTableII，andthemoney-rentwouldbethesame，=£；36。Butthetotalcapitalwouldbe£；371/2，whereasinTableIIitwas=20。

Thetotalinvestedcapitalwouldbedoublealmost，whileproductionwouldbenearlytreble；thegrain-rentwouldbedoubleandthemoney-rentwouldremainthesame。Hence，ifthepricefalls-whileproductivityremainsthesame——asaresultoftheinvestmentofadditionalmoney-capitalinthebettersoilswhichyieldrent，thatis，allsoilsbetterthanA，thenthetotalcapitalhasatendencynottoincreaseatthesamerateasproductionandgrain-rent；thustheincreaseingrain-rentmaycompensateforthelossinmoney-rentduetothefallingprice。ThesamelawalsomanifestsitselfinthattheinvestedcapitalmustbeproportionatelylargerasmoreisinvestedinCthanD，i。e。，insoilsyieldinglessrentratherthaninsoilsyieldingmorerent。Thepointissimplythis:inorderthatthemoney-rentmayremainthesameorrise，adefiniteadditionalquantityofsurplus-productmustbeproduced，andthegreaterthefertilityofthesoilsyieldingsurplus-product，thelesscapitalthisrequires。IfthedifferencebetweenBandC，andCandD，werestillgreater，stilllessadditionalcapitalwouldberequired。Thespecificproportionisdeterminedby1)theratiooffallinprice，inotherwords，bythedifferencebetweensoilB，whichdoesnotyieldrentnow，andsoilA，whichformerlywasthesoilnotyieldingrent；2)theratioofthedifferencesbetweenthesoilsbetterthanBupwards；3)theamountofnewlyinvestedadditionalcapital，and4)itsdistributionamongthesoilsofvaryingquality。

Infact，weseethatthislawmerelyexpresseswhatwasalreadyascertainedinthefirstcase:Whenthepriceofproductionisgiven，nomatterwhatitsmagnitude，therentmayincreaseasaresultofadditionalcapitalinvestment。ForowingtotheeliminationofA，wenowhaveanewdifferentialrentIwithBastheworstSoiland£；11/2perquarterasthenewpriceofproduction。ThisappliestoTableIVaswellastoTableII。Itisthesamelaw，exceptthatourpointofdepartureissoilBinsteadofA，andourpriceofproductionistakenas£；11/2insteadof£；3。

Theimportantthinghereisthis:TotheextentthatsomuchandsomuchadditionalcapitalwasnecessaryinordertowithdrawthecapitalfromsoilAandcreatethesupplywithoutit，wefindthatthismaybeaccompaniedbyanunaltered，rising，orfallingrentperacre，ifnotfromallplotsoflandthenatleastfromsome，andsofarastheaverageofthecultivatedplotsisconcerned。Wehaveseenthatgrain-rentandmoney-rentdonotmaintainauniformrelationtooneanother。Itismerelyduetotraditionthatgrain-rentisstillofanyimportanceineconomics。Onemightdemonstrateequallywellthat，e。g。，amanufacturercanbuymuchmoreofhisyarnwithhisprofitof£；5thanhecouldformerlywithaprofitof£；10。Itshowsatanyrate，thatmessieurslandlords，whentheyaresimultaneouslyownersorshareholdersinmanufacturingestablishments，sugar-refineries，distilleries，etc。，mayintheircapacityasproducersoftheirownrawmaterialsstillmakeaconsiderableprofitwhenthemoney-rentisfalling。[1]

II。Decreasingrateofproductivityoftheadditionalcapital。

Thisintroducesnothingnewintotheproblem，insofarasthepriceofproductionmayalsofallinthiscase，asinthecasejustconsidered，onlywhenadditionalinvestmentsofcapitalinbettersoilsthanArendertheoutputfromAsuperfluousandthecapitalisthereforewithdrawnfromA，orAisemployedfortheproductionofotherproducts。Thiscasehasbeenexhaustivelydiscussedabove。Itwasshownthattherentingrainandmoneyperacremayincrease，decrease，orremainunchanged。

Forconvenienceinmakingcomparisonswereproducethefollowingtable:

TABLEIV

TypeofSoilAcresCapital£；Profit£；PriceofProduction。perQrOutputQrsGrain-RentQrsMoney-RentQrsRateofSurplusProfitA121/21/231000

B121/21/211/2213120%

C121/21/21326240%

D121/21/23/4439360%

Total41010618180%averageNowletusassumethataquantityof16qrssuppliedbyB，C，andDatadecreasingrateofproductivitysufficestoexcludeAfromcultivation。

Insuchcase，TableIIIistransformedintothefollowing:

TABLEV

TypeofSoilAcresInvestmentofCapital£；Profit£；OutputQrsSellingprice£；Proceeds£；Grain-RentQrsMoney-Rent£；RateofSurplusProfitB121/2+21/212+11/2=31/215/76000

C121/2+21/213+2=515/784/711/224/7513/7%

D121/2+21/214+31/2=71/215/7126/7466/71371/7%**

Total3***1516273/751/293/7942/7%average****[*IntheGerman1894editionthisreads512/5——Ed。]

[**Ibid。1371/5——Ed。]

[***Ibid。:4——Ed。]

[****Here，aswellasintablesVI，VII，VIII，IXandXthelandwhichyieldsnorentisleftoutofconsideration——Ed。]

Here，atadecreasingrateof；productivityoftheadditionalcapital，andavaryingdecreaseforthevarioussoiltypes，theregulatingpriceofproductionhasfallenfrom£；3to£；15/7。

Theinvestmentofcapitalhasrisenbyone-half-from£；10to£；15。

Themoney-renthasfallenbyalmostone-half-from£；18to£；93/7，butthegrain-renthasfallenbyonly1/12——from6qrsto51/2qrs。Thetotaloutputhasrisenfrom10to16，orby60%。Thegrain-rentconstitutesalittlemorethanone-thirdofthetotalproduct。Theadvancedcapitalistothemoney-rentas15:93/7，whereasformerlythisratiowas10

:18。

III。Risingrateofproductivityoftheadditionalcapital。

ThisdiffersfromVariantIatthebeginningofthischapter，wherethepriceofproductionfallswhiletherateofproductivityremainsthesame，merelyinthatwhenagivenamountofadditionalproduceisrequiredtoexcludesoilAthisoccursheremorequickly。

Theeffectmayvaryinaccordancewiththedistributionofinvestmentsamongthevarioussoilsforafalling，aswellasanincreasing，productivityoftheadditionalcapitalinvestments。Insofarasthisvaryingeffectbalancesoutthedifferences，oraccentuatesthem，thedifferentialrentofthebettersoils，andtherebythetotalrentaltoo，willfallorrise，aswasalreadythecaseindifferentialrentI。Inotherrespects，everythingdependsuponthemagnitudeofthelandareaandcapitalexcludedtogetherwithA，andupontherelativemagnitudeofadvancedcapitalrequiredwitharisingproductivityinordertoproducetheadditionaloutputtomeetthedemand。

Theonlypointworthwhileanalysinghere，andwhichreallytakesusbacktotheinvestigationofthewayinwhichthisdifferentialprofitistransformedintodifferentialrent，isthefollowing:

Inthefirstcase，wherethepriceofproductionremainsthesametheadditionalcapitalwhichmaybeinvestedinsoilAdoesnotaffectthedifferentialrentassuch，sincesoilA，asbefore，doesnotyieldanyrent，thepriceofitsproduceremainsthesame，anditcontinuestoregulatethemarket。

Inthesecondcase，VariantI，wherethepriceofproductionfallswhiletherateofproductivityremainsthesame，soilAwillnecessarilybeexcluded，andstillmoresoinVariantII(fallingpriceofproductionwithfallingrateofproductivity)，sinceotherwisetheadditionalcapitalinvestedinsoilAwouldhavehadtoraisethepriceofproduction。Buthere，inVariantIIIofthesecondcase，wherethepriceofproductionfallsbecausetheproductivityoftheadditionalcapitalrises，thisadditionalcapitalmayundercertaincircumstancesbeinvestedinsoilAaswellasinthebettersoils。

LetusassumethatwheninvestedinsoilAanadditionalcapitalof£；21/2produces11/5qrsinsteadof1qr。

TABLEVI

TypeofSoilAcresCapital£；Profit£；PriceofProduction£；OutputQrsSellingprice£；Proceeds£；RentRateofSurplusProfitQrs£；

A121/2+21/2161+11/5=21/528/116000%

B121/2+21/2162+22/5=42/528/111221/56120%

C121/2+21/2163+33/5=63/528/111842/512240%

D121/2+21/2164+44/5=84/528/112463/518360%

4204242260131/536240%AsidefrombeingcomparedwiththebasicTableI，thistableshouldbecomparedwithTableII，whereatwo-foldinvestmentofcapitalisassociatedwithaconstantproductivity，proportionaltotheinvestmentofcapital。

Inaccordancewithourassumption，theregulatingpriceofproductionfalls。Ifitweretoremainconstant，=£；3，thentheworstsoilA，whichusedtoyieldnorentwithaninvestmentofonly£；21/2，wouldnowyieldrentwithoutworsesoilbeingbroughtundercultivation。

Thiswouldhaveoccurredduetoanincreaseintheproductivityofthissoil，butonlyforapartofthecapital，notfortheoriginalcapitalinvested。Thefirst£；3ofproductionpriceyield1qr；thesecondyield11/5qrs；buttheentireoutputof21/5qrsisnowsoldatitsaverageprice。Sincetherateofproductivityincreaseswiththeadditionalinvestmentofcapital，thispresupposesanimprovement。

Thelattermayconsistofageneralincreaseincapitalinvestedperacre(morefertiliser，moremechanisedlabour，etc。)，oritmaybethatonlythroughthisadditionalcapitalitisatallpossibletobringaboutaqualitativelydifferentmoreproductiveinvestmentofthecapital。Inbothcases，theinvestmentof£；5ofcapitalperacreyieldsanoutputof21/5qrs，whereastheinvestmentofone-halfofthiscapital，i。e。，£；21/5，yieldsonly1qrofproduce。TheproducefromsoilAcould，regardlessoftransientmarketconditions，onlycontinuetobesoldatahigherpriceofproductioninsteadofatthenewaverageprice，aslongasaconsiderableareaoftypeAsoilcontinuedtobecultivatedwithacapitalofonly£；21/2peracre。Butassoonasthenewrelationof£；5ofcapitalperacre，andtherebytheimprovedmanagement，becomesuniversal，theregulatingpriceofproductionwouldhavetofallto£