which they would have paid according to the present rent of their estates, and that which they actually pay.1 Had rents been gradually falling, the landlords would have lost this difference. As this tax is payable in money, so the valuation of the land is expressed in money. Since the establishment of this valuation, the valuation of silver has been pretty uniform, and there has been no alteration in the standard coin.2 Had silver risen, it would have proved very oppressive to the landlord. Had it fallen, it would have reduced the revenue of the sovereign. Had any considerable alteration been made in the standard of the money, it would have hurt the revenue of the proprietor, or that of the sovereign, pp. 418-20.

A tax upon the rent of land which varies with every variation of the rent, is recommended by the Economists

The rise in rent during the early part of the eighteenth century was very considerable. The dread of a full land-tax often made the landlords incline towards a pacific policy. For an account of the origin and progress of the land-tax, see Macaulay's History of England, cap. 19.

2 For some ingenious conjectures on the variations in comparative value of the precious metals since 1782, see Jevons's paper on 'Variation of Prices since 1782,' in the Journal of the Statistical Society for 1865. It is the object of the paper to show that after 1790 an enormous and long-continued elevation of general prices presents itself, and after reaching its maximum about 1809, an equally remarkable decline sets in, which lasts till 1849, in which year prices were to those of 1809 as 41 to 100. According to Jevons the substitution of paper for specie can have produced but a small part of the elevation, and as to bad corn harvests they will not account for a rise in price in the case of metals, fibres, and oils. The progress of our industry has been continuous, and merely accelerated of late years, so that there is nothing in it to account for a great rise or a great fall. The high prices point to a redundancy of the precious metals, and were attended with a drain to the east from 1800 to 1815, and a comparatively low price of oriental produce. But when prices fell very much the drain was stopped, and oriental produce rose. After the Australian and Californian gold discoveries, the drain recommenced, general prices rose, and the prices of oriental produce again fell. (The rise in price from 1849 to 1865 amounted to 21 per cent.) In these cases, had the cause of the drain of precious metals to the east been the great demand for oriental produce, such produce would have been comparatively high, not low, in price.

of France as the most equitable of all taxes, since all taxes, as they say, must ultimately fall upon the rent of land, and therefore ought to be imposed equally upon the fund which must finally pay them. It will appear, from the following review, what are the taxes which fall finally upon the rent of land, and what are those which fall finally upon some other fund. In the Venetian territory, arable lands, given in lease, are taxed at 10 per cent., but if the proprietor cultivates his own lands, he pays only 8 per cent. of the supposed rent. This is more equal than the land-tax of England, and might, under a proper administration, and by a public register of leases, be easily carried into effect. Some landlords, instead of raising the rent, take a fine for the renewal of the lease. This is, in most cases, injurious to the landlord, frequently hurtful to the tenant, and always hurtful to the community. Some leases prescribe to the tenant a certain mode of cultivation. This condition ought to be considered as an additional rent.3 Some landlords require a rent in kind, and others a rent in service. Such rents are always more hurtful to the tenant than beneficial to the landlord. When the

This dictum is obviously false, for if it were true the whole of the taxation of the country, imperial and local, might be taken from rent, and yet the landlord would ultimately recover a greater income than he had before. (See Rogers's note on this passage.)

For a refutation of the erroneous theories of the Economists, see M'Lecd.

2 This practice is now nearly extinct. It was always dishonest. 3 Excessive game-preserving does not seem to have been common in Adam Smith's time, and hence the difficulties which it causes between landlord and tenant were little known. As to the interest which the public has in its continuance, see Fawcett's Political Economy, p. 217

seq.

Conditions prescribing a particular mode of cultivation are justified by some on the ground that it is the interest of the tenant to exhaust the farm by overcropping, during the last six or seven years of the lease, whilst it is of course for the interest of the landlord that it should be kept in good order throughout. See M'Culloch's note on this passage in his edition of Adam Smith, p. 374.

landlord chooses to occupy a part of his own lands himself, the rent should be valued by the farmers and landlords in the neighbourhood, and an abatement of the tax might be granted to him, provided the rent of the lands which he occupied did not exceed a certain sum, for the system of cultivating by bailiff by no means deserves encouragement, pp. 420-23.

Such a system of administration might, perhaps, free a tax of this kind from uncertainty. The expense of levying a land-tax which varied with every variation of the rent, would no doubt be somewhat greater than that of levying one which was always rated according to a fixed valuation. The discouragement which a variable land-tax of this kind might give to the improvement of land seems the principal objection: this might be obviated by regulations sufficient not only for the landlord's complete indemnification, but so as to give some encouragement to the improvement of land. A tax of this kind would suit all the variations of the society, consequently would be more proper than a tax always to be levied according to a certain valuation, pp. 423-25.

Some states, instead of the simple expedient of the register of leases, have had recourse to the expensive one of an actual survey and valuation of all the lands in the country. Doomsday Book seems to have been the result of a very accurate survey of this kind. In the ancient dominions of the King of Prussia, the land-tax is assessed according to an actual survey and valuation. According to that valuation, the lay proprietors pay from 20 to 25 per cent., ecclesiastics from 40 to 45 per cent., pp. 425, 426.

A land-tax assessed according to a general survey,

1 Rogers doubts whether a variable land-tax would have any such effect. See his note.

For M'Culloch's view, which is strongly opposed to such taxes, see his edition of Wealth of Nations, p. 613.

how equal soever at first, must become unequal, unless an attention is paid to it, which is unsuitable to the nature of government. The governments of Prussia, Bohemia, Sardinia, and Milan actually exert this attention, which is likely in the long-run to bring to the contributors more vexation than relief, pp. 426, 427.

Taxes which are proportioned, not to the Rent, but to the Produce of Land.

1

Taxes upon the produce of land are in reality taxes upon the rent, and are finally paid by the landlord;' the farmer always computing the value of all the taxes before he agrees with the landlord for the rent. The tithe, and every other land-tax of this kind, are very unequal taxes. Upon the rent of rich lands it may be no more than one fifth, or 48. in the pound, whereas upon that of the poorer lands it may amount to one half, or 10s. in the pound. The tithe is also a great discouragement both to the improvements of the landlords and to the cultivation of the farmer, as one who lays out no part of the expense is to share so largely in the profit. The cultivation of madder was for a long time confined by the tithe to the United Provinces, and introduced into England only in consequence of the statute which enacted that 5s. an acre should be received in lieu of all manner of tithe upon that article, pp. 427-29.

In many parts of Asia the state is principally supported by a land-tax proportioned to the produce. In China it consists in a tenth part of the produce; but this tenth part is so very moderately estimated as in many provinces not to exceed the thirtieth part. The land-tax of Egypt amounted to a fifth part. In Asia

This principle has one exception, viz. the case in which the tenant is a man of exceptional skill. His skill cannot be appropriated by the landowner, and the tithe will in this case fall on the tenant (see Rogers's note). This of course does not apply to the case of a tithe-rent charge, which will always fall on the landlord.

this sort of land-tax is said to interest the sovereign in the improvement and cultivation of land. But the tithe of the church is divided into such small portions that no one of the proprietors can have an interest of this kind, pp. 429, 430.

The

Taxes upon the produce of land may be levied either in kind or, according to a certain valuation, in money. The parson of a parish may find advantage in receiving his tithe in kind; but a sovereign could not, from receiving his taxes in kind. A tax upon the produce of land which is levied in money may be levied according to a valuation which varies with the market price, or according to some fixed valuation. produce of a tax levied in the former way will vary only according to the variations of the real produce of the land. That levied in the latter way will vary, not only according to the variations in the produce, but according to the value of the precious metals, and the standard of the coin. When a certain sum of money is to be paid in full compensation for all tax and tithe, the tax becomes like the land-tax in England.1 Such is the modus taken in lieu of tithes. It neither encourages nor discourages improvement, pp. 430-32.

Taxes upon the Rent of Houses.

The rent of a house may be distinguished into building-rent and ground-rent. The former is the interest or profit of the capital expended in building and keeping the house in constant repair, which is regulated by the ordinary interest of money. Whatever part of the whole rent of a house is over and above this reasonable profit goes to ground-rent, and

The tithe has now been commuted for a money payment, founded on the average price of wheat, barley, and oats during the seven previous years. No notice having been taken by the Act 6 and 7 William IV. cap. 71 of wool, meat, butter, and cheese, the tithe owner has been injured in an important particular. (See Rogers's note.)