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did not clearly recognise the influence of manufactures on the



increase of rents; on the market value of landed property itself;



and on the agricultural capital; and did not state this by any



means to its full extent; but; on the contrary; has drawn a



comparison between agriculture and manufactures in such a manner



that he would to a make it appear that agriculture is far more



valuable and important nation than manufactures; and that the



prosperity resulting from it is far more lasting than the



prosperity resulting from the latter。 Adam Smith in so doing merely



sanctioned the erroneous view of the physiocratic school; although



in a somewhat modified manner。 He was evidently misled by the



circumstance that  as we have already demonstrated by the



statistical conditions of England  the material agricultural



capital is (even in the richest manufacturing country) ten to



twenty times more important than the material manufacturing



capital; in fact; even the annual agricultural productiOn far



exceeds in value the total manufacturing capital。 The same



circumstance may also have induced the physiocratic school to



over…estimate the value of agriculture in comparison with



manufactures。 Superficially considered; it certainly appears as if



agriculture enriches a country ten times more; and consequently



deserves ten times more consideration; and is ten times more



important to the State than manufactures。 This; however; is merely



apparent。 If we investigate the causes of this agricultural



prosperity to their basis; we find them principally in the



existence of manufactures。 It is those 218 millions of



manufacturing capital which have principally called into existence



those 3;311 millions of agricultural capital。 The same



consideration holds good as respects means of transport; it is the



money expended in constructing them which has made those lands



which are within the reach of the canals more valuable。 If the



means of transport along a canal be destroyed; we may use the water



which has been hitherto employed for transport; for irrigating



meadows  apparently; therefore; for increasing agricultural



capital and agricultural rents; &c。; but even supposing that by



such a process the value of these meadows rose to millions; this



alteration; apparently profitable to agriculture; will nevertheless



lower the total value of the landed property which is within reach



of the canal ten times more。



    Considered from this point of view; from the circumstance that



the total manufacturing capital of a country is so small in



comparison with its total agricultural capital; conclusions must be



drawn of a totally different character from those which the present



and preceding school have drawn from it。 The maintenance and



augmentation of the manufacturing power seem now; even to the



agriculturist; the more valuable; the less capital as compared with



agriculture it requires to absorb in itself and to put into



circulation。 Yes; it must now become evident to the agriculturist;



and especially to the rent…owners and the landed proprietors of a



country; that it would be to their interest to maintain and develop



an internal manufacturing power; even had they to procure the



requisite capital without hope of direct recompense; just as it is



to their interest to construct canals; railways; and roads even if



these undertakings yield no real nett profit。 Let us apply the



foregoing considerations to those industries which lie nearest and



are most necessary to agriculture; e。g。 flour mills; and there will



be no room for doubt as to the correctness of our views。 Compare;



on the one hand; the value of landed property and rent in a



district where a mill is not within reach of the agriculturist;



with their value in those districts where this industry is carried



on in their very midst; and we shall find that already this single



industry has a considerable effect on the value of land and on



rent; that there; under similar conditions of natural fertility;



the total value of the land has not merely increased to double; but



to ten or twenty times more than the cost of erecting the mill



amounted to; and that the landed proprietors would have obtained



considerable advantage by the erection of the mill; even if they



had built it at their common expense and presented it to the



miller。 The latter circumstance; in fact; takes place every day in



the backwoods of North America; where; in cases when an individual



has not adequate capital to erect such works entirely at his own



expense; the landowner gladly helps him by contributing labour; by



team work; free gifts of timber; &c。 In fact; the same thing also



occurred; although in another form; in countries of earlier



civilisation; here must undoubtedly be sought the origin of many



ancient feudal 'common mill' rights。



    As it is in the case of the corn mill; so is it in those of



saw; oil; and plaster mills; so is it in that of iron works;



everywhere it can be proved that the rent and the value of landed



property rise in proportion as the property lies nearer to these



industries; and especially according as they are in closer or less



close commercial relations with agriculture。



    And why should this not be the case with woollen; flax; hemp;



paper; and cotton mills? Why not with all manufacturing industries?



We see; at least; everywhere that rent and value of landed property



rise in exactly the same proportion with the proximity of that



property to the town; and with the degree in which the town is



populous and industrious。 If in such comparatively small districts



we calculate the value of the landed property and the capital



expended thereon; and; on the other hand; the value of the capital



employed in various industries; and compare their total amount; we



shall find everywhere that the former is at least ten times larger



than the latter。 But it would be folly to conclude from this that



a nation obtains greater advantages by investing its material



capital in agriculture than in manufactures; and that the former is



in itself more favourable to the augmentation of capital than the



latter。 The increase of the material agricultural capital depends



for the most part on the increase of the material manufacturing



capital; and nations which do not recognise this truth; however



much they may be favoured by nature in agriculture; will not only



not progress; but will retrograde in wealth; population; culture;



and power。



    We see; nevertheless; how the proprietors of rent and of landed



property not unfrequently regard those fiscal and political



regulations which aim at the establishment of a native



manufacturing power as privileges which serve merely to enrich the



manufacturers; the burden of which they (the landed interest) have



exclusively to bear。 They; who at the beginning of their



agricultural operations so clearly perceived what great advantages



they might obtain if a corn mill; a saw mill; or an iron work were



established in their neighbourhood; that they themselves submitted



to the greatest sacrifices in order to contribute towards the



erection of such works; can no longer; when their interests as



agriculturists have somewhat improved; comprehend what immense



advantages the total agricultural interest of the country would



derive from a perfectly developed national industry of its own; and



how its own advantage demands that it should submit to those



sacrifices without which this object cannot be attained。 It



therefore happens; that; only i

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